I'm not sure about some people, but I think my reasoning would be that in order to exercise and potty the dog, you would need to leave your property, and could not be off leash. The dog might not get the mental and physical exercise it needs if the owner has to leave or travel a distance to exercise the dog.
I definitely think it's doable honestly; it just takes work, extra work, and a lot of people aren't willing to work around the dog that much.
Personally, it's worked out fine in my situation. I'm (temporarily) in a two-story condo and have no trouble exercising and training the dog outside of the house. There is another GSD in the building, though, that is a bored, aggressive, nervy mess, because the owners don't go out of their way to work with her.
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