I am a pilot and I would never fly an aircraft that did not have a transponder "off switch". Here is why
Fire:
A transponder is an electrical device. It is also a transceiver. This means it uses energy and puts out heat. As with all electrical devices, components can fail. If the power supply goes it is possible for it to start smoking and/or start a fire. Hence the transponder has an off switch and a circuit breaker. Even a car radio has a fuse to protect it.
Engine Start:
When starting the engine(s) you often keep the avionics off until the electrical system stabalizes. If you were to start with the avionics on, you could voltage spike and ruin equipment. Or at the very least shorten it's lifespan.
Engine Shutdown:
Likewise you turn off much of the avionics before engine shutdown for protection.
Generator (alternator) Failure:
If a generator or alternator fails the transponder may have to be deactivated to conserve energy...at least temporarily.
Ground Procedures:
In many airports domestically and around the world...you leave the transponder off during ground operations. There are several reasons for this. One is that certain radars can have problems with all of the ground returns. Not all airports around the world have the newer equipment that can read transponders properly from planes on the ground.
Bad Signals:
For several reasons, transponders can need resetting because they not operating perfectly. I have even turned off and on my transponder in New York City traffic because a controller requested it. The controller said, "recycle your transponder," so I did and everything was fine.
Backup:
If your main transponder is having problems and you have backup...you still want to turn off the malfunctioning transponder completely...and then activate the backup. Why would you want the bad unit stuck on while the good unit is on as well. This really could cause confusion on a controller's radar and to other aircraft around you.
FAA Certification:
I doubt the FAA would certify a transponder being installed without an off switch for the above mentioned reasons.
So I
completely disagree with removing the off switch to a transponder.