“And I can think of several reasons why.”
Indeed. Reason #1: for many, it’s simply the easiest way.
It certainly cuts down on overhead expenses.
Homeless means you’re off law enforcements radar to a certain extent, and other entities that would otherwise be tracking them as well.
Panhandling can be lucrative which means drug and alcohol habits can thrive. (Interesting how many Homeless and panhandlers I see that have cell phones and are wearing very nice sneakers.)