Yes. And that’s why it’s a gold sink.
Some bad actors could technically bot an enormous amount characters and update transmog at an extremely frequent rate and cause server or client performance issues.
If you remember in vanilla, players would spam AOE spells in an attempt to lock up player clients for fun. Same concept for transmog. If Orgrimmar doesn’t crash, but gets super laggy, that lag will persist until it does crash, gets automated restarted, or manually restarted. And that could be quite some time if it doesnt get automatically detected (especially if it’s no lasting long enough to trigger an auto-restart).
Now, I know it sounds stupid (it is), but even at a small amount, this does dissuade bad behavior. A lot of these “why does this exist” questions can be answered with some serious of "because what if 1000 players did this at the same time "… again, i know it sounds stupid, but honest idiots can ask smart questions.