The main reason is that the controller is much simpler. The problem with how BLDC controllers work is that they don't know the motors rotation unless it's moving, so if you stall it (or you're just starting off), it just has to start applying current until it can start to get some feedback. This wouldn't be a problem if you had a sensored motor though.
I hadn't really thought about it until just now, but a sensorless brushless motor would really not work at all for starting off or driving slowly. The minimum RPM for this would be fairly high before the ESC doesn't know what's going on, and when starting off, you would have almost no control over the throttle until you're moving. It's possible you could even end up going backwards a part rotation if the ESC starts off with the wrong motor pole.
It's worth noting that most of my experience with brushless motors is with small quadcopter motors, so there might be some crazy way these larger motors are handling things that I don't know about.
I do know howver that it's really hard to stall a 1KW brushed motor, and if you go up to a 2 or 3 KW motor, you'll easily have enough torque to spin the tires of just about any kart.
Edit: Also on the topic of KV, I'm not really sure if a higher KV would burn out more easily, but it's definitely true that a 1KW 100 KV motor will have more torque than a 1KW 1000 KV motor, so if you're going a set speed, the higher KV will end up using more power, and thus heat up quicker.