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It's because constantly heating the brewed coffee causes the solid particles in the coffee to carry on brewing causing that heavy, stewy, bitter flavour which gave coffee from drip machines its bad rep. It's OK if you can drink it within a few minutes but it doesn't take long to have a negative effect.
Brewing into the thermal carafe just holds the temperature steady. The flavour does degrade but not nearly as badly as if it's stewed on a hotplate.
Stevethecoffee
Out of interest, why don't you rate the hot plate version?