Just the tone of the way you asked this question seems to indicate that you've already made up your mind that it's a bad thing and you're just for fuel for your own feelings.
I think it helps promote the feeling of being a team provided the majority on board with the idea. I once worked for a company that made it clear that they wanted to close my group down. We got summoned to the headquarters, but before we went I offered to have some polo shirts made up for my team - we all wore them to the meetings as a symbol of unity and my boss freaked. That's long in the past now, but we all still remember those shirts.