Quite simply, the reason is one of implementation and drift. Yes, your presentation layer needs to know about your business objects to be able to represent them properly. Yes, initially it looks like there is a lot of overlap between the implementation of the two types of objects. The problem is, as time goes on, things get added on both sides. Presentation changes, and the needs of the presentation layer evolve to include things that are completely independent of your business layer (color, for example). Meanwhile, your domain objects change over time, and if you don’t have appropriate decoupling from your interface, you run the risk of screwing up your interface layer by making seemingly benign changes to your business objects.
Personally, I believe the best way to approach things is through the strictly enforced interface paradigm; that is, your business object layer exposes an interface that is the only way that it can be communicated with; no implementation details (i.e. domain objects) about the interface are exposed. Yes, this means that you have to implement your domain objects in two locations; your interface layer and in your BO layer. But that reimplementation, while it may initially seem like extra work, helps enforce the decoupling that will save TONS of work at some point in the future.