Yes, it could be. The trade-off is usually measured by the cost to the company of re-creating or losing the data entirely. So for some stuff such a system is feasible, for others it isn't and then you'll have to compromise. Log data for instance does not need to be stored like that unless there are legal rules saying that you have to keep it no matter what.
For each business this is a delicate affair and you should spend some time on figuring out what you really absolutely have to have and what you could lose without losing the company or getting in trouble with the law.
For each business this is a delicate affair and you should spend some time on figuring out what you really absolutely have to have and what you could lose without losing the company or getting in trouble with the law.