Reasons?
True, water is neutrally bouyant if it is free-flowing in a water medium. When confined to a ballast tank, it takes on very different physical characteristics. As the water-ballasted boat heels, the captured water rises above the waterline, thus causing the necessary righting action. Further, the water provides inexpensive weight to offset an otherwise tender condition of a lightweight hull. Water is inexpensive ballast. Have you priced lead lately? In combination with a swing keel, the below hull extension is reduced for easier launching and removal and for lower positioning on the trailer. And, when the water ballast is drained during retrieval to the trailer, the traveling weight is substantially reduced, resulting in easier towing and less fuel consumption by the towing vehicle. I, too, would recommend reading the article on the TrailerSailor web site.