The only minuses I can identify are that law enforcement needs more lotion to continue their handwringing without injury.

Headline might as well be "Colorado legalizes weed, nothing bad happens to anyone"

Yeah, this is common joke, especially when you feel ambivalent.

Examples: "Do you want to go out for dinner tonight? Or should we stay in and save money?" "Do you want cake or ice cream for dessert?" "Should we prioritize this bug fix or focus on hitting our release target?"

Somebody might reply with tongue in cheek, "Yes", to indicate they agree with both parts, want both things, it's not a simple choice, etc.

FWIW, I encounter it more with older people. As a kid, I heard it often from uncles and grandparents.

~Don't you hate it when you ask that question out of curiosity, and then the person you asked gets all mad that you didn't give them either coffee or tea afterward?~

The question has several possible responses. "No, thank you," means the person wants neither coffee nor tea. "Coffee, please," and "tea, please" mean just what you think. "Yes, please," means that either coffee or tea would be acceptable, and the respondent is indifferent to which one.

This usually means "I'll take one of whatever you're having," and is probably intended to be less burdensome to the host, by allowing them to choose what they would prefer to serve rather than forcing them to defer to their guest.

Of course, the person might be trying for a cheap laugh rather than politeness. In that case, it would be appropriate to wait a beat, chuckle, optionally make a flirtatious gesture (such as a wink or arm touch), then ask "So either one is fine?"