Setting the body's margin and padding is there to avoid the default space between window edges and the HTML body. Your specific website design may need this or not; for example stackoverflow needs it for the gray box at the bottom.
It is not needed to set it for * to accomplish that, as obviously the body settings will overwrite the * settings for the tag.
Altering * settings in a brutal way like this just removes sane defaults previously present for all the different tags out there. You should better only alter the CSS which directly bother you, for example to get rid of unnecessary space between specific elements. It's kinda like people giving an absolute default font size 10 for the whole page, which annoys users with special needs a lot.