There are a few cases where it can make sense. Consider an American couple living in Switzerland, with long term positions in Geneva. They have a child (three, actually) who are US citizens by birthright. The parents obtain US passports for the children, who travel to the US every year or two to visit relatives. The children grow up in Switzerland, attending Swiss schools.
At passport renewal time (5 years), the children have to obtain US social security numbers per Section 6039E of the Internal Revenue Code (26 U.S.C. 6039E) for their passports. The U.S. Department of State provides the SSN and foreign residence information to the Department of Treasury, for tax collection purposes. Eventually, the children grow up, and take jobs in Geneva.
While they may not be aware of this, they now owe taxes to the US Treasury Department, in spite of having been in the US perhaps 2 months out of their entire life, and being effectively Swiss nationals paying Swiss taxes for their Swiss employment. Failure to file and pay to the US Treasury leaves them susceptible to arrest should they ever be on a flight that touches a US port.
This is a case where the risks and complexity may outweigh any benefits for the individuals, who consider themselves to be Swiss. Giving up US citizenship removes complexity, removes the risk of accidental violation of laws and regulations of a country they are unfamiliar with, and avoids some emotional distress when they start getting strange mail from the IRS, and get called in by their Swiss bank to sign a US IRS W-9 form.