It’s also good that your business doesn’t have to rely on a third party every time you need to pull down your dependencies and build your software.
There are a number of issues with this approach, although the practice still might be a net benefit.
One, you are going to be behind on security patches. You have to figure out, are you more at risk from running unpatched code for longer, or from someone compromising an upstream package?
Two, if too many people use this approach, there won't be anyone who is actually looking at the code. Everyone assumes someone else would have looked, so no one looks.
This does seem impractical at even a modest scale.
Some of this is cultural in addition to being paranoid about security, or having strict compliance requirements. For your average startup, they may not have any time to dedicate to this and other fires, but that's not a universal situation.
Who? Seems totally intractable to me.