Logical for whom?
For Thais it is extremely logical to keep foreigners on temporary year long visa extensions and 90-day reports. Keeps track of where they are living, easy to remove criminals, no vast numbers of extended family automatically allowed entry, cannot claim benefits or free healthcare (unless paying tax on wp), not a burden on the society and can be removed at any moment at their own expense.
Another added benefit is it keeps people that don't have an interest in Thai culture, assimilating or learning the Thai language (which is the majority) well at arms length from any sort of permanence here. Just as it should be.
Sounds like a winner to me, wish my home country would adopt similar rules tbh.