However, this principle isn't really enforced on a technical level. Only some standards such as SLAAC actually require the network to be a /64, and since SLAAC isn't really relevant for servers, most cloud providers have been relatively stingy with their IPv6 allocations - at least compared to what RFCs actually recommend. (Which would probably be a /48 per customer, per region.)
The idea behind the /64 minimum was to make auto-configuration easier - you could just stick the layer 2 ID (i.e. the MAC address) in the second half and not have to worry about collisions or stateful assignment system like DHCP. Remember that IPv6 was designed in the mid-90's, so both of these decisions seem silly now - using the MAC would be a serious privacy issue (modern operating systems use a random ID which changes frequently) and DHCP is very mature.
Why not? Does it result in technical problems? I know very little about IPv6 (but I know that a /64 is an absurdly large network).
If you were meaning IPv6-only then yes that would be pretty bad.