From my understanding, the only reason why I would think MPIO with guest iSCSI is mentioned as an unsupported configuration is because the multipathing would be totally dependent on the nic teaming and failover policies defined in the vSwitch.
A configuration where you have set IP hash or Load based multipathing in the vSwitch/DVS will obviously load balance the traffic without considering it is meant for iSCSI multipathing.
Issues like intermittent path failures, LUN trashing can then be caused.
If we have to use the Guest MPIO even though we have other alternatives like RDM, vmfs datastores the best approach would be to make the ESXi networking free of multipathing.
1 vmnic using 1 physical nic all the time.
this could in-turn be not cost effective as it becomes difficult for the nics to be used for other traffic(VM traffic)