Personally I'd rather see it as an option to 'convert fully rested bars to NC' as a non-destructive display/print routine (meaning if there is a chord there, leave it, just show NC for printing or notation windows). Here is why:
I primarily use BIAB for arranging and creating songs, so when I'm doing so it really is easier (for me) to enter the song with all chords in place, then start fine tuning it with holds, rest, shots and all of the other enhancements as I go. If I ran around the song changing chords to NC, at some point I'd forget what the chord was that was there and if (actually when) I wanted it back I'd have to revert to a previous version or guesswork.
When you see NC in a musical score, it is generally a finished work and nobody needs to know what leaps and turns the composer took to get there. But as the guy with BIAB and the song on my computer at home, I do want to know. I'm sure a lot of people using BIAB are very good at music theory and wouldn't miss the chords at all, but not me. If I can't see it on the screen I really can't visualize it as far as the song structure and progressions go.
Just my 2 cents worth (which ain't worth much these last few days)