Anyone Using Physical Product Exclusively?

Is anyone familiar with or currently using the methodolgy of only ever creating Physical Products? The theory is that a detail part would always be a Physical Product containing a 3D Shape and 3DParts are never created.

Can anyone offer any insights or pros and cons in taking this approach using a cloud installation. I only anecdotally know of some OEMs using this methodolgy on older releases with customized on-prem installs.

I'm interested to know if there is a solid set of reasons not to go down this route.