Think about, for instance, a company's internal customer database (including billing, etc), accessed with internal tools. CSR/Support people need to be able to see billing status but not credit card numbers, for example. Different levels of management need to be able to generate reports, but again not get credit card numbers.
For these use cases the opposite is true. The further you take auth and permissions away from the database/devops admins, the more times you're going to need to reinvent auth and permissions boilerplate for every internal tool under the sun.
Which is a pointless exercise if none of the tools in question are ever going to be accessible outside of the company's VPN anyway.
Active Directory / LDAP are not abandoned technologies, after all.