Did they want the extra 10% buffer for any particular reason?
Reason I ask, I always agreed with your take on not over-designing, philosophically. I had a couple of professors who made a big deal about being conservative/ round-up on calculating design elements, but once you tally up the different loading cases, you shouldn't ever bump the total required strength (again) beyond whatever the required multiplier is.
However, when faced with real life projects, I learned fairly early to ignore that advise, mostly because of the risk of having to redesign due to a changed design requirement. Of course I've also never worked for a company as structured as one like Boeing, and I've also encountered LRFD 99% of the time over ASD.
It's one of those life lessons that's never really sat right with me, but I still consider to be the rational choice.