The real reason you need to book early is the hotel space. Many rooms are sold at a premium and you could end up a long ways away from the convention and pay a high rate for your room. Once conference I attended saw room rates as high as $700 per night for a regular room, while the very next week they were down to a more reasonable rate of $79 per night. Booking early means you will avoid the last minute increases in room rates that many of the hotels implement when you are attending a convention center in Las Vegas NV.
It also pays to shop around a bit. Some hotels that are not busy in a particular week when some of the smaller conventions are in town may offer great rates for their rooms. If you are prepared to walk a bit further or take a taxi you can sometimes save a lot on the price of your room.
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