I personally don't think it's stupid. How are they suppose to prevent people from taking advantage of that. If I was able to create an app and put it on my device then what's stopping me from putting that App online putting some malware in it and having hundreds of thousands of people downloading it? The provisioning is there for a reason, like it or not. It's helping to protect us... If you know of another protection/work around please sure.
People already take advantage of that by jail breaking or buying provisioning profiles.
In reality Apple would protect us better by making provisioning profiles free for testing. In that case there would be no reason for people to involve third party software which potentially can do bad things.