It's not something I “think” — it's how it works.
People who dug into the engine discovered it half a decade ago; CI¬G's own documentation confirmed it.
Yes, it's bad because of how boundlessly idiotic it is. No-one else does it this way because they are not boundlessly idiotic. You either use your physics engine because you want a realistic outcome, or you don't because you want a pre-determined outcome. You don't put layers upon layers of self-defeating and competing code on top of each other to turn the former into the latter. The idiocy of doing so compared to… you know… just deciding the outcome and have it be that way is boundless.
Or, as it is more commonly labelled at CI¬G, “Tuesday.”