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So if you only have one type it drops all of it.
Hmm. Gross. Granted, it make sense: I guess the cargo would be palletized by type or in a container and it's just a matter of letting it slide out a ramp in the cargo bay.
To get around it traders tend to take a bunch of 1 items in their hold (e.g 1 x10 random cargo and 40x what your actually trading. That means you oonly have a 10% chance to lose your actual cargo
On one hand, I can argue against buying it since I rarely do, even in my merchant games. If I'm hauling $100k+ credits in cargo (or worse, $500k+ in rare goods), I'll take my chances against a pirate's guns. I'll hit those escape talents and run away very fast and repair the damage later. You can also surrender to pirates in many cases and only lose the cargo (or with the proper paperwork not even get looted in some cases). Not a huge deal if you weren't carrying anything super expensive anyway. In addition, eventually you can buy Skip Off the Void later which has a different penalty but lets you keep that expensive cargo.
On the other? Avoiding a fight that you can't bribe your way out of when you're not equipped for it for just a little bit of money, especially when you were just carrying some gas to lose less money travelling from Point A to Point B? When that surrender button means serious crew injuries or worse? Sweet.
Also, when doing orbital ops and you're seriously worried about pirates wrecking your day and surrender just isn't viable, buy some cheap stuff and have jettison cargo ready and it's another form of get out of fighting free while gaining intel, rep, or whatever you need from orbit at low(er) risk.
If we were, we'd probably put a unit limit on what can be dumped (requires 10+ units, etc) and make it smart to dump a cargo that is below the average value of your other cargo (i.e. it wouldn't dump Terrox Artifacts if you were carrying Grain as well). Still, at the moment, no plans to change. Just sharing.