Not over the top at all. It's a pretty standard authentication device. A lot of remote users aren't in the mindset of preserving corporate security on their laptop. Some login schemes allow the user to store the password in a cache file so the user doesn't always have to type it in. If not, the user sometimes creates a file to store these passwords in because "they're too hard to remember." Not very secure if the laptop gets stolen or lost.
The object is to try and keep the security schemes out of the responsibility of the users - they're not being paid to be network security gurus, you are. And anything that can provide a method of secure authentication while still remaining passably easy is a bonus.
Bottom line, I recommend them since anyone is able to dial into your line and lots of software exists for password guessing/cracking.
Hope that helps,