This might be okay in isolation, but eventually as the entire team of engineers start to underdeliver, the team and company does get affected in terms of feature rollouts / velocity, and it's difficult to recover from it. People won't want to suddenly correct / do more work even if it's crucial, and they can point to their previous underestimated commitments and say that is a full week's worth of work. YMMV as with anything, but not knowing a team's true velocity does affect planning and sales.