There are a couple of potential downsides:
1. It makes the SQL more cluttered and hard to read. On the other hand, by default, you're not reading the SQL, so it's reasonable to say that the solution to this is to quote identifiers by default and let people turn it off if it annoys them.
2. On some databases, quoting seems to have a dual role: it escapes reserved words, but it also turns on case sensitivity. This could result in confusing behaviour on these databases and would be a breaking change for users of those databases.
We could make the default behaviour depend on the database provider (e.g. default to quoting for SQL Server, but to not quoting for Oracle or PostgreSQL), but that makes LightSpeed's behaviour harder for users to understand and predict. I feel your pain though because I've been bitten by the same issue! I'll raise this with the Mindscape brains trust and see if we can come up with anything.