[hobs]

Because I am not asking about when someone should sleep or not.

I am asking if paying someone to do something would produce an unambiguously better product, why argue with the practice unless its harmful/illegal/etc?

If I create software and I find that if I pay my employees to sleep and they create a better product than if they worked for 8 hours without me paying them to sleep?

You can blame the employees, but if you decide to ignore this practice and your competitor takes it up, they will beat you in the market while you complain about paying people to sleep.