No it would not be a good idea for the submodules to be always pointing to the HEAD of their repos. It might make sense for syncing with some very stable external projects but that is a very limited use case.
I need to have a consistent set of all the submodules I'm working with. I need to reliably get the exact same versions of all the modules in the big repository. This allows me to do a "git bisect" to search for problems in submodules.
Doing "git submodule update" is not as bad as the OP suggests it is. It makes perfect sense to have it as it is.