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1) It syncs your progress and achievements. So if you ever hop onto a friend's computer, you can log in and still have your gear, customizations, game progress*, etc.
2) If you want to play Campaign Co-op, you have to be hooked into the XBox Live system, which relies on your login info.
3) It's also DRM protection. If everyone who wants to play has to use a registered account, then Microsoft makes it harder for people to use cracked/pirated copies.
*Regarding game progress, it will keep track of which missions you've completed. You need Cloud Sync turned on if you want to be able to resume a game mid-mission on a different PC.
I have one idea for a way around it but I have literally heard of nobody trying it and it's based off of an untested observation:
https://steamcommunity.com/app/976730/discussions/0/3417685728352737517/#c3417685728353702699