I don’t see it as good or bad.
if they’re the rules a provider comes up with to supply a pump abide by them, If you don’t like it buy your own pump & supplies.
Admittedly applying rules to the level of control achieved would be somewhat more complicated and likely to be unfair in some cases.
It’s not limited to diabetics, the same arguments & contracts are made about smokers/drinkers & organ donners.