I think that would enable tearing for all windows no matter what they are as long as they are fullscreen. I'm not sure that would be desirable. Although I lack the knowledge to judge this. So sure, that is an option. I would really like to restrict this to games only, though.
In general you are right. We want to avoid screen tearing. Gaming doesn't have to be but can be an exception. If you were to play some fast paced game like a competitive shooter for example. Then permitting tearing would reduce latency. In my case, I can feel the difference when tearing is allowed in The Finals. It is easier to follow the target with your crosshair. That doesn't mean everyone would feel the same. Nvidia's driver version 560 also got released recently. That might have something to do with me perceiving the gameplay as more smooth. All I'm saying is, smooth and enjoyable gameplay not only depends on a high fps count. Framerate, frame pacing, and latency are all factors in this.
Oh, and by the way. this doesn't at all mean that one is going to see/perceive any screen tearing when this is enabled. I haven't noticed any at all. I'm sure one could find some when one was to go and really look for it. I'm simply not too sensitive about that stuff.