Negative space is always useful. Simply spacing shit out to create low information density isn't the same thing. Adding a bunch of unnecessary dividers (cards and shadows) are definitely not the same thing as negative space.

Negative space would be allowing the space between items to create a division instead of the borders and shadows.

You forgot to mention the very low cost, especially for font because we gotta hide that pesky content that we have to show after all.

Images (even small, low-quality ones) are far more costly than text, no?

The saying "Form follows function." is well ingrained among industrial designers, UI designers ought consider it as well.

Although my assumption here is front end designers are often subjected to death by a thousand revisions from 'the suits'.