You need balance to do the balance beam, because if you don't have balance, then you will keep falling off, and that's very frustrating! Take it from a level 6 gymnast! You could hurt yourself, so I advise you not to do gymnastics if you don't have balance. Or at least no beam.
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You need balance for Gymnastics because if you don't have balance you will not be able to do the beam because when you are on a beam you balance on a 10cm wide area and you also have to do moves on that too. You will not be able to do handstands, headstands and balance on one foot and you need to do them moves so that you can move on in gymnastics and get better.
I am in gymnastics and when I don't have/use balance, then I fall. You have to have balance because when you are competing, you get points deducted because you fell, took an extra step, or didn't use balance.
One reason is that you have to jump, tumble, and dance on a four inch wide beam. Another is because if you do competitive gymnastics then the judges will deduct points for wobbles and falling.
you need balance because you need to have total control over your body while being upside down or just executing something as simple as a cartwheel.