My feeling is that this is a valid choice for artists to make, and if you disagree then avoid shows where this is the policy.
Or part of why. There are several motivators:
1) use of the recording that could cost paying attendance in the future (e.g. copyright issues)
2) damage control of statements that they regret later (e.g. Michael Richards' racist rant)
3) Protection of the interests of all the attendees positioned behind and around you. When anybody is recording, view from directly behind is outright obscured, and the experience of everybody behind you, where you are in their field of view at all, is impaired by this lit-up screen facing them. People who are recording are inflicting their choice on all others behind them.
I don't think it is socially accepted to use your phone in the cinema/opera/theatre either, so why should concerts be any different?