Original User: mkennedy
Because ArcGIS doesn't yet have a robust algorithm to calculate areas on an ellipsoid (spheroid) surface. It's actually pretty difficult, with most published solutions using various approximate methods. So, it's easier (and still gives reasonable results) to project data to a equal area projection and do the calculations on a plane. The results are very sensitive to how big the area is, and consequently, how dense the vertices are.
Melita