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There is no harm registering your domain name with your web host as long as you are using a reputable web hosts such as HostGator.

Most web hosts are providing free domain name with their hosting package which means you don't need to pay for it. I think this is a very good reason to register your domain name with them. [Unfortunately some web host such as HostGator doesn't offer free domain name. HostGator charges $15 per domain name.]

There are a few reasons why you don't want to register your domain name with your web host. Pricing is the biggest reason. If they are selling you a domain name for $15 and you can get it for $10 elsewhere, you can save $5 by registering at the other registrar.

By not registering your domain name with your web host, you can also prevent your web host from keeping you hostage.

Even you are the rightful owner of the domain name, you still need to control everything through them. Just like you make a bank deposit with a bank and you are the rightful owner of your money, you still need to collect your money through the bank. The bank can go bankrupt, freeze your money or have lousy service. A nasty web host can also go bankrupt, freeze your domain name or have a broken control panel. They can freeze your domain name claiming that you have not pay your hosting bill although you know you have canceled your hosting service long ago (such as in WebHostingPad scam).

The key point here again is reputation, just like how you choose your bank. Registering a domain name in another place doesn't mean you can avoid all the risks. For example, a budget domain registrar RegisterFly went belly up a few years ago. The control panel was broken and no one could change the DNS setting, transfer their domain name away or even renew their domain name. Some people lose their domain name due to expiration. It took quite sometime before the domain owners were adopted by another domain registrar.