Food in contact with the wall might heat up too quickly and not transfer the heat to rest of the food. Food away from the wall might be undercooked and the food in contact with the wall might char. It is probably suitable for soups and broths. But for cooking rice and such not very liquidy food, heating the wall too rapidly would be a problem.
You have the same problem with any regular pot with too much heat. The point here is to improve efficiency, so you can actually turn down the flame. In addition, it looks like the heat will be more evenly distributed between the bottom and the walls, which would also help avoid burning the food.