Provisioning Profiles have shorter lifetimes now, yes.
I don't think Apple is insane, they probably have a good reason for it. Does it jive with what you want out of life? It appears not, but I would think that they have a legitimate reason for wanting to change the limitations and it is not because of a lack of sanity. Besides, Apple would have to be collectively nuts and I don't think that that is the case or even really possible.
It barely takes a moment to renew an expired one, and then each developer on your team has to update as well - and that also barely takes a moment.
Most iPhone app dev cycles probably hover around the 2 month range anyway so this shouldn't be a big deal to most.
So like the guy in that PS3 commercial - gonna file this one under not an issue.