Usually, when "the YX problem" happens, "Y" is something like "SSH won't let me use my private key because the permissions are too open. I can't change the permissions because [insert reason that would make any security-conscious person cringe]. How do I get SSH to let me use a world-readable private key?"
So yes, there's probably some technically valid use-case, but it's a really big footgun and it probably would be a much better idea to fix the underlying problem the right way.