Lithium battery powered items technically should not be held in the cargo hold and are classified as dangerous goods as they need to be properly stored and isolated by international safety standards.
If you have a lithium battery or battery powered item that is in your carry on or on your person then the threat is immediately accessible and the crew can do something about it.
If you have undeclared lithium battery powered items in the cargo hold and they catch fire the heat produced can set of a huge blaze really fast. While there are fire extinguishers in the cargo hold it is still allot safer to have the threat human accessible than have a chance for the fire to spread a lot faster and possibly cause a catastrophic loss of life.
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