Had to tone down the original response your 'DBA' team deserve!
In response to your questions:
Dedicated server - Not at all. Everywhere I've worked with clusters, the DTC service is installed when the cluster is commissioned. Typically it sits in its own resource group or within the cluster group. If in its own group its usually sits on whichever server is hosting the cluster group.
Intrusive? - Absolutely not. It should be installed when the cluster is created, as per MS best practice.
Do you have an argument? - You most certainly do. The links below should cover the why and how for getting it installed.
http://blogs.msdn.com/b/sqlblog/archive/2006/10/06/msdtc-and-sql-server-on-a-cluster.aspx
http://support.microsoft.com/kb/254321