I think it is more a matter of anoxic conditions than the sandwiching. Current will still be passing around it, even if it is wedged in the rocks. If you bury it, it is stagnant, and will decay as a result. Also, the tissue can encrust rocks, but cannot encrust sand, so it will never be able to grow buried...
Think about an acro frag. If you bury it, the buried portion will die, and if the remainder of the colony survives, it can only grow up, not encrust like it wants to. If you wedge it in a hole in the rocks, a bit of tissue may not fare so well, but the rest of the colony can support it enough to encrust.
It is the same reason greg said to strip the flesh from the skeleton before epoxying it in place. If you just cover the flesh with epoxy, it will suffocate and necrotize, and the whole colony will suffer. If you epoxy the skeleton only, the tissue will quickly encrust over the epoxy, and it will look like it just came from the wild.