I am considering using the low voltage under cabinet recessed lighting for the under sides of my soffit.

I have a soffit going all the way around my room of 14x16. The location of the lighting will be on the sides. I already have canned lighting in my ceiling for main lighting, these are just for effect.

I have access to the back side of one soffit (utility room), but not the other (on outside wall). I am thinking that I can use a transformer and multi connect, connected to a dimmer for 4 or 6 lights (either 2 or 3 on each side).

I am not going to have any insulation in my soffit.

However, I read that these lights are not to be in wall or in ceiling. Why?

I am thinking of putting the transformer in my utility room and just run all the wire within my soffit to make the connects.

What am I missing? What should I be aware of? Is this considered a fire hazard?