We shouldn't be optimizing things around reporting. However, you can still get your reports when everything is 1 point.

"It depends on how the team is operating"

Every team should be using "relentless improvement" as their operating model.

"I leave it up to the teams if they want to work that way or if that is the right approach for a specific team."

A large portion of the industry is working in ways that hurt themselves and their business goals. If teams are not using a continuous delivery workflow, they are an ineffective team. The goal isn't "whatever the team wants." The goal is "how do we deliver better value sooner, safer, and happier." I'm quite happy to show my peers where they are hurting themselves. I am even more happy to push them and everyone around them to do this job better. It's a profession, not a hobby.