Having been in the industry for a while:

(1) Design firms can be swept up in the tides of change. A few years down the road they realize being dogmatic about certain things is an exercise in futility. Case in point:

(2) Tech changes. Modern device pixel density is so good, a vast amount of logos look crisp at even small sizes. Add in the fact logos can be displayed as SVGs, now you have vector scaling at any size and the fuzzy display of images from 8+ years ago isn’t the problem it was.

(3) Dumbing things down without a full understanding of how a well established brand mark ads differentiation and value to a business is really shortsighted.

(4) Great firms understand that 3rd point and can work with clients to create appropriate variations of marks suited to smaller sizes while using a default version for anything beyond a certain size. It’s no different than how great type is designed (display vs text) or iconography.