From Green, Schwarz and Witten's book on String theory:
"Membranes and objects of still higher dimensionality have another glaring problem, as follows. Eq (the action for such objects) defines a n+1 dimensional quantum field theory, which by power counting is renormalizable for n = 1 and unrenormalizable for n > 1. Making sense of Eq() as a quantum theory is as hard as making sense of general relativity as a quantum theory. Thus membranes and higher dimensional objects would hardly be a promising start toward quantum gravity"
There are other reasons for it too, outlined in that same book next to this quote (it's on page 60). So it's not arbitrary, and we have some ideas why it might be that way, but as far as I know they're all technical. You can imagine though that strings "spread out" interactions, avoiding the kinds of divergences you get in QFT.