I'm just speculating based on my limited sphere of visibility, but Eric's observations are consistent with mine in Monterey and the San Diego area. The tendency to overweight students for the convenience of the instructor "might" be more prevalent in colder water where wetsuits and long surface swims are common.
Watching instructors running their class' first ocean dive illustrates the phrase "herding cats". Getting all of them suited up for the first time in their rented rigs, down the beach, through the small surf, a 100 yards/meters or so swim through the kelp, and ready for their first drills in salt water is... challenging. Do that a few times with a few students that are too buoyant to get to the bottom and the motivation to overweight becomes clear.
Unfortunately, there aren't many places on the California Coast that are easy to do salt water buoyancy checks. Most pool sessions are too limited (and pools are too warm) for students wear one or two piece 5-7mm wetsuits for buoyancy tests. None of this excuses the practice in my mind, but I understand the barely tenable situation that instructors find themselves in.
A lot more time and pier-side access from a floating dock would be wonderful, but most harbormasters don't allow divers to get wet without permits and good reasons, like scraping hulls. Even with that, most marinas in this state are not places you want wouldn't want to introduce students to diving, or the wonderful world of littered mud bottoms with propellers spinning overhead.