I think the argument is that the equivalent of an infinite loop would be a halt / abort instruction, not a complete removal of the loop and continue running anything else.

Not necessarily what you want in that case either: it's a common pattern in cases where you want the system to halt until you can attach a debugger to inspect the state. A halt/abort instruction that trashes that state would be undesirable (some CPUs have an instruction that is equivalent, but many do not, after all, why bother if you can just write an infinite do-nothing loop?).