Will the measures taken damage the company more than the benefit of the increased security?
In my eyes, banning storage media without a practical replacement is on the wrong side of the risk analysis equation. Sure, it's not desirable that files can be moved without full access control and auditing, but if people don't have a tool that works the same way then all your employees who rely on it will suffer.
It would have been great to see a standard encrypted portable drive, probably with the decryption software on a different partition establish a foothold in the world. With the addition of DLP software, that could have allowed employees to continue to do their work while mitigating the risk of lost or stolen data.
edit: what this doesn't cover is transferring large files quickly, or transferring files to a computer that isn't currently configured with the systems required for file transfers.