This actually highlights a problem of Slack. Reading an old Slack conversation is massively inefficient, especially if people have chimed in with irrevelevant stuff. Taking what you learn from a Slack conversation and using it to update proper docs or an issue is far better for anyone who isn't part of that conversation at the time.
Clearly the problem here is the policy.
At first I read this as having the discussion on a different medium in the first place, which seems a bit extreme. But from the rest of your comment I think mean just copy the discussion rather than move it, by copying and pasting (or manually re-summarising) elsewhere. I definitely agree with that. As you say at the end, that's a good idea even if Slack messages aren't auto-destroyed. (But there are definitely cases where it seems like you'll never need some scrap of information again and then it turns out you do.)
In my office, Slack messages that live forever don't stop people from asking questions that have already been answered. The search tool is an afterthought.
If they have a good reason for deleting messages, that's bad. If their legal team is overzealous and that power is unchecked, that's also bad.
5 day retention is so wildly impractical, it's a tacit admission the corp is up to something. Gives legal time to drag anything out in court until it's all gone. By the time the other party learns they have the 5-day retention, it's too late.
Anyone hoping to use this trick to pull off the perfect caper will be dismayed to discover that not only is the other party allowed to talk to your employees, human testimony is admissible.
The idea of trying to make the past go away after five days, by deleting the digital records, reminds me of https://xkcd.com/1494/.
I'd also like to point out that this thread - where we're discussing the pros and cons of a technique for getting rid of inconvenient records, is itself the kind of awkward talk that, if found in a Slack channel during discovery, would turn in to something else entirely in the hands of some other company's lawyers. That sheds an interesting light on these retention policies.
Not sure how factually true this is, but that rationale makes perfect sense in my head for why legal would make that rule for Slack/messaging while being totally cool with persistent wikis.