To me minimatch knockouts are bad for many reasons. A huge amount of these minimatches are decided in rapid or blitz (or even worse, Armageddon), and the draw becomes very important. When you could become World Champion without playing a single opponent in the top 20 or winning games except in blitz, it just makes the whole thing a bit too random.
People are not dumb <snip>
You'd be surprised.
On topic: Probably Carlsen wants to change the format because he finds it boring. I don't think he likes to prepare, just to play chess.
Knockouts are more random though, like some people have alreayd pointed out, and we might have more surprise champions. I don' like that at all, it makes the title feel more like a wandering trophy and takes away a lot of the prestige.
It speaks highly of Carlsen though, that he wants a format that in all likelyhood will lead to him losing the title much sooner than with the current. He clearly wants what he thinks is best for the sport.