I have this policy enabled and have voiced my concerns about it. Upper management feels that the informatioin in the contacts is less a concern than the email on the BBs. I have to agree (reluctantly) that the information in contacts is not a major concern than to be able to get into the email stored on the BBs.
Anyway, it is pretty easy to set this in policy. The trick is to get all of your deployed BB users to follow instructions to turn it on. It would be nice if they (RIM) could get Policy to force this setting on the handhelds.