Basically many optical applications need something that approximates a point source, the closer the better (Because it makes for an easier, cheaper and more efficient optical system.
For example in a projector you need close to a point source illuminating the image plane because anything else will result in a blurry image. You can approximate a point source by means of distance, condenser lenses, pinholes, and various other things, but they all add cost and rob you of efficiency, starting with a small source is always going to be best.
There is a reason the old cinema projectors used carbon arc and later xenon arc lamps, and why modern video projectors use UHP mercury arc lamps all of which have notably small emission areas.
Regards, Dan.