What are the Advantages and Disadvantages of Informing My Recruiter?

Trust

I will begin with a very simple premise: the basis of any good relationship is trust.
 
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If you do not trust your recruiter and he does not trust you, then it is unlikely that you will have a successful relationship. Thus, the first advantage of disclosure is that you establish and begin to build trust with your recruiter. Conversely, if you are not straightforward with your recruiter, then your relationship will be built upon a very unstable foundation.

Worst Case Scenario

I can tell you that as a recruiter it is very important to me that candidates are honest with me. This is not only because I want us to trust each other, but also because I do not want us to be blindsided at any point during the process.
 
I have been a recruiter for a number of years, and I have helped candidates navigate a wide variety of difficult and challenging situations. You may feel that you are unique, but I can assure you that you are not! If I understand your situation - the good, the bad, and quite possibly the ugly - then you can benefit from my experience, and together we can prepare for an assortment of scenarios, including the worst-case scenario.

On the other hand, if I do not know all the facts, then you are depriving yourself of the benefits of my experience and putting both of us in a very vulnerable and potentially embarrassing position.