It's a smart move by GM. For the same reason, Acura, Infiniti, Lexus, and Audi dealers do not sell their luxury brands next to their non-luxury brands in order to maintain some sort of status. One reason why some associates won't step foot onto Hyundai or Kia lots, because they don't want to drive their 50/60K car off the same lot of a 25K Sonata/Optima.... It's a bit materialistic, but that's how some of my clients are, and they want the full luxury experience.
A Cadillac dealer should be exclusive Cadillac and give Cadillac treatment, my local dealer is GMC, Buick Cadillac and the service is not what I have come to expect from a Cadillac dealer will never buy another Caddy from a multi line dealership
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