* It is highly processed, which can affect nutrition in a time when you really need nutrition. For example, flours may last 6-12 months, whole grains a lot longer.
Grains such as wheat will last a great deal longer than the milled flour, but you will need the equipment to mill the wheat grain into flour. Hand milling (lets assume that domestic electrically powered milling machines are unavailable i.e. no electricity supply) is quite a tiring chore in an emergency situation. Vacuum sealing powdered foods and kept in a dry cool environment will keep for more than 12 months. Rotation as part of normal kitchen preparation of food is required as with all food stuffs (with the possible exception of very expensive canned freeze dried food stuffs)
* The need for water for reconstituting and digesting it.
The amount of water to reconstitute the powdered ingredients for baking is actually very small in comparison to the amount of water required for digesting the prepare bread and cake. Soups, milk etc does require substantially more water, but if water is such short supply then the general advice is not to eat anything.
* It has more surface area exposed to air and light, which reduces livespan and nutrients. Even if it's sealed in the ideal container, how long did it take to get there? What did it lose in the meantime?
* Destruction of nutritional content, molding in poor packaging.
Powdered foods require a little more attention when stored for the medium term such as a dark/low moisture/cool temperature environment together with air tight/pest resistant storage bins/containers.
Freshly baked bread - spoils in 3 days - ready to eat.
Frozen bread - 3 months - needs refrigeration and defrosting.
Wheat Flours - spoils 12+ months - needs some kitchen and baking equipment.
Wheat Grain - 5-10+ years. - needs specialist kitchen and baking equipment.
The ability to produce freshly baked bread 3-4 months into a long term emergency cannot be underestimated.
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