Insane, maybe - but there maybe some other factors in play here.
Maybe the company's data center is full and additional storage would require additional investment in racks, cooling, power distribution, etc.
Maybe the company is trying to encourage sane storage practices. How many storage network managers or engineers see TB of storage wasted because one department or another copies everything, twice, to the network... and never touches it again?
I would *love* to be able to charge back to the other departments that clutter up my servers with multiple copies of their files - but it gets very political very fast. So we now leverage tiered storage and put those file stores on slow SATA disks with weekly only backups. If the file becomes a popular file - it'll eventually get cached in the controller and be available very quickly to many users.