In Canada I had to leave and re-enter for my permanent resident status to complete. It’s not that uncommon - but it’s a pain.
OP isn't criticizing the practise of leaving to renew. He's criticizing the this new policy of not letting you back in when you leave.
In Canada you never have to leave to renew or change status; it's just sometimes faster to do so. It's always the applicant's choice. I went through the whole work permit to PR to citizenship pipeline without ever having to leave the country.