It's not more work if you're focused on the grade over learning; it's more work if you care about the grade at all, assuming the material is at all challenging. Unless you get a perfect grade on the first attempt (or at least a high enough grade to guarantee yourself a top mark in the course overall), you're going to feel compelled to keep re-trying. (And if other coursework forces you to leave it be, then to feel like you're missing out.) Better to be able to just put in your best effort the first time, and then you're done. I can only speak for myself, but I would have hated this system when I was in school.
A grading system that is more work for students focused on the grade over learning is something I would see as a feature not a bug.