Why should recursion be preferred over iteration?
Solution 1:
Iteration is more performant than recursion, right?
Not necessarily. This conception comes from many C-like languages, where calling a function, recursive or not, had a large overhead and created a new stackframe for every call.
For many languages this is not the case, and recursion is equally or more performant than an iterative version. These days, even some C compilers rewrite some recursive constructs to an iterative version, or reuse the stack frame for a tail recursive call.
Solution 2:
Try implementing depth-first search recursively and iteratively and tell me which one gave you an easier time of it. Or merge sort. For a lot of problems it comes down to explicitly maintaining your own stack vs. leaving your data on the function stack.
I can't speak to Haskell as I've never used it, but this is to address the more general part of the question posed in your title.
Solution 3:
Haskell do not allow iteration because iteration involves mutable state (the index).
Solution 4:
As others have stated, there's nothing intrinsically less performant about recursion. There are some languages where it will be slower, but it's not a universal rule.
That being said, to me recursion is a tool, to be used when it makes sense. There are some algorithms that are better represented as recursion (just as some are better via iteration).
Case in point:
fib 0 = 0
fib 1 = 1
fib n = fib(n-1) + fib(n-2)
I can't imagine an iterative solution that could possibly make the intent clearer than that.