I agree with you that developers need admin rights on their development machines, but I have witnessed first hand why many companies attempt to take away local admin rights.
When I'm responding to security alerts where developers have downloaded random .dll files from the internet, or some "troubleshooting utility" that is actually malware, it doesn't take long until the local admin conversation comes up.
This is one of those classic "technical solutions for bad human behaviour" scenarios where a small number of idiots ruin it for everyone. If you want local admin as a developer, then we need to be able to trust that you aren't going to do something stupid.
It seems the best way to do this is to issue developers multiple boxes (corporate laptop + dev box only for dev), and or use a good software whitelisting program that tracks elevations & the reasons for them, instead of just blanket giving everyone local admin on their own PC.