It's a solution used by amateurs. A pro fills and redrills the original holes, especially on an instrument of significant value...which this one isn't IMO. So I guess it doesn't matter.
No, it doesn't. A pro may do things that way now, but decades ago a player wouldn't be inclined to seek out a skilled repairman just because a couple of screws stripped out. He'd run bigger ones in and get back to the gig. Ultimately, it becomes a question of economics and utility. When Billy Sheehan modded his P-Bass over the years (using a plethora of ill-fitting fasteners, BTW
), he was trying to achieve an end result: to make the bass functional in the manner he needed it to be, and on a limited budget. Is he a pro? Certainly not in the world of guitar repair and modification. However, I would submit that it is those amateur repairs that gives that particular instrument its current significant value.
Also, we know better now. I just had to secure the pickguard on an old Japanese P-bass copy that I was modding. I filled the original holes with plastic wood and re-used the original rusty screws.