The worst thing I can think of is classroom environment - and even that would be at most 1 update per hour, which is pretty infrequent in the context (the update frequency needs to be much bigger than the clock skew, which is normally under a second)
And even that assumes that each record is updated every time user logs in (since each record is stored separately). In practice, records could be added or removed to the system, but the actual modification will be pretty rare - once initial setup is done, it will be only periodic password changes.
I get that that's the problem of the automation, not the daemon, but I'm curious about who exactly is representing users when the people running a project state things like that so unequivocally, and if those users are just excluded from any benefits from a system like this because fuck 'em.
It does not apply to user files, there is a completely different mechanism for them
Would love to see what Lennart measured and how he came to this conclusion.