It also makes it dead simple for most users, even nontechnical ones, to use and understand. They don't even have to do anything special, their Signal contact list is already bootstrapped when they install the app.
It's crazy to me that with all of Signal's emphasis on security (being designed by one of the top security researchers in the world, no less), they chose to make tying your account to a phone number a requirement.
I go very far out of my way to make sure that nothing important to me is tied to my phone number.
So long as you keep entering the correct PIN periodically, Signal won't let anybody register with your phone number without knowing the PIN you've shown you remember.
If you quit using Signal, after a while there haven't been any correct PIN entries for too long and anyone can claim that phone number again (and if they want, set a new PIN).
"Hello? No, this isn't Dave, he got a different number. No I don't know what it is. No this isn't a prank, please stop calling"
As a result I would imagine that unless the network is absolutely clean out of numbers (which they try hard to avoid) it will just never reuse numbers in such a short period. The only way somebody else has the number while the PIN is valid is that they're attacking you, which a PIN blocks.
So my guess would be that this ends up not being a problem in reality, it worried me right up until I read the expiry mechanism and then I went oh, that makes sense.
I've seen first hand how numbers can be reused fairly quickly (months). (This was in the Caribbean).
A 7 day pin expiry? I need to look at more details here because I can definitely go 7 days without using my phone. Or, I've travelled abroad and used a local SIM while my "home sim" was never in use for the duration of the stay. (But I kept the ID number on whatsapp/signal/telegram).
It isn't crazy. There's a tradeoff between convenience and security. Signal appears to trying to create the most secure system that's still usable by most people, and are advancing the state of the art in many areas to make that happen.
It's important to keep in mind that the best security in the world is of no use if you don't bother to use it.
In any case, Signal gives you optional actions you can take to solve some of the problems your concerned with.