Some reasons why noise isn’t ALWAYS bad.
Reliance on algorithms means outcomes are only as good as the algorithm. Algorithms can be flawed, in some times nefarious and hidden ways (such as racism by proxy using ZIP codes). Simple, mechanical algorithms also don’t change automatically to reflect changing societal norms or technologies.
The arguments, though, all are arguments against a certain approach to noise reduction. There are other usually methods to reduce Noise that don’t come with that issue. For example, averaging a panel of judges allows for changing societal norms to be taken into account, but also is less noisy than a single judge.