In todays political climate, surveillance, mis-information, and misrepresentation of abilities are the norms. A multi-pass overwrite definitely doesn't hurt anything.
There's no productivity loss unless you're one who has to sit there and watch the overwrite take place. Most PCs can perform the overwrite while doing other normal tasks. Unless you're erasing large files or huge numbers of them, the only difference is that a multiple pass overwrite takes a bit longer.
The only thing that's certain is that we don't know the whole story. It's likely to be much more than they admit to. We don't know what the recovery abilities of non-civilian (NSA, military) options are.
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