Combos serve more purposes than damage, they serve a purpose of resets, damage, and more importantly positioning.
Having general real estate of the field puts you in a far better advantage, and that is determined to non-zoning characters by you and your opponent's position and combos help properly position your opponent for what is field advantage, momentum, pressure and more combos to keep the flow.
Arakune is special, since he's a zoner with plenty of setups his opponent's positioning isn't as crucial as pretty much any position is useful to Arakune, after that he needs momentum to get started, which depending on his opponent is a bit harder than it needs to be, but once he gets in a combo, damage is very important, but for Arakune (and this was told to me by most other Arakune mains), the more important tool for his combos is :the answer to your question: the recurse.
Here's with the 6C loop, you get damage and recurse, which allows for everything I mentioned earlier.
Advantage in positioning, real estate, pressure, momentum and further combo opportunities.
I think. :P