I can agree that its not a good practice, but when the business simply won't supply a list of users, or they want "everyone" to either be able to contribute or approve, there is just no other option that I am aware of...Short of added every single user to a SP groups or AD group.
I have also found that trying to use "All Users" domain group does not do a very good job, I think its because this group just tends to be TOO large, and SharePoint seems unable to parse all the users.