Looks like a mechanical problem waiting to cost you more money.
* Winding means sliding contacts to transfer the power... when they wear and ultimately fail, the failure mode is often overheating due to higher resistance. Now you have heat in a confined space (wall) with poor access. If you call the fire department to make sure there is no fire along with the smoke, they will make sure, which is a good thing, but it won't be pretty.
* The spool must have a spring rewind mechanism... again, rewind mechanisms tend to fail and now you have a cord that won't go back out of sight.
Yes, problematic. I guess though that if the box in which the wire is rolled can be fully pulled out of the wall (after unscrewing of course) then maybe these problems won't be so bad.
* Winding means sliding contacts to transfer the power... when they wear and ultimately fail, the failure mode is often overheating due to higher resistance. Now you have heat in a confined space (wall) with poor access. If you call the fire department to make sure there is no fire along with the smoke, they will make sure, which is a good thing, but it won't be pretty.
* The spool must have a spring rewind mechanism... again, rewind mechanisms tend to fail and now you have a cord that won't go back out of sight.