Not having the species recognized by iNat means that observations of those species wind up being stuck in a limbo of genus level at best in many cases. Sometimes they get stuck at family level, even if we all know what the specific species is.
This is a difficulty for those of us working in the relevant areas as it means that being able to use iNat as a conservation tool and a species presence record tool is severely curtailed.
For the average user it’s not an issue, but for those of us with a professional need for accuracy it poses a challenge.
iNat is used in different ways and for different purposes by different people. It’s one of the challenges that the platform faces. Personally, I’d love for a comprehensive list of all species everywhere to be automatically added. The “add as needed” is clumsy. I see why it’s done that way, the sheer amount of work needed to comprehensively add and fact-check names for all the potential additions would be immense, but I think that it would have correspondingly large benefits.