I gave a thumbnail explanation below, but let me expand.
Low carb is obviously not just for weight loss, but for health and athletic performance as well. In the initial several days on low carb (induction level or not) most people lose a bunch of water weight and begin burning more fat for fuel, but not very efficiently. When Drs. Phinney and Volek measured athletic performance it was obvious that it tails off drastically in that first week, then slowly climbs through the next two weeks, returns to the previous normal at around three weeks, and then tends to improve at least slightly after that. So the body is obviously still undergoing metabolic changes for at least three weeks. Keeping carbs ultra low lets the body get used to this new metabolic state.
Also, some people will ONLY lose on induction levels. If they start out at a higher carb level and don't lose over the first several weeks, when the most rapid loss usually occurs anyway, they'll be more likely to throw in the towel cause "the diet doesn't work!"
So, the most insulin resistant people will probably always need to keep their carbs very low, while others can still lose at slightly higher levels.
A good (though technical) explanation is in the Art and Science of Low Carbohydrate Living.
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