The rationale likely is that Adagio OE does it the same way as the old DOS OE and many users wanted Adagio to work the same way. This is the first request for handling it differently, 8 years after Adagio OE was released.

It may also be that it would be undesirable to commit stock for an order this is not shippable for whatever reason - since when the order is OK to be taken off hold, the qty will be placed on Sales Order.

What do other people think - would there be complaints if orders on Hold committed stock as qty on SO?
At best, this would have to be another YACPO (yet another company profile option) as certainly not everyone would want this behaviour.
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Regards,
Softrak Tech Support