I was told that bananas push out roots to a certain point and then those roots die off and the corm pushes out new roots. The old roots would then rot and and create little compost corridors. As long as you are fertilizing you would be growing plenty of biomass to mulch and creating shade like the others mentioned.
im guessing shade is the main reason for growing them
also, the leaves are huge and you can use them to protect the soil.
i chop+drop lots of leaves of all sorts, but when i put a nana leaf on top
it shades all the others, letting them rot faster. the plant is high in potassium as well.
the fact that older roots rotting away would be great for the soil
but, i am guessing thats a long term thing.
as long as water isnt a big issue, i dont see it being a problem unless they are really close like a foot or 2.
i grow lots of plants close together.
sun is my main issue now, i dont worry about the roots.
Mycorrhizal fungi will actually take an excess of certain nutrients from one plant, or one area of the soil
and distribute it to another. they will even do this with water.
its also possible that Banana naturally has many species of Mycorrhizae colonizing its roots
and when planted close to certain plants, those fungi will start colonising them too.
its one reason i like to grow plant close to each other.