Somebody always wants to undelete something, or examine it to see why it was deleted, or see who changed something, or blah blah blah. It helps the business, it helps you as developer by giving you debug information as well as helping you to cover your ass when you are blamed for some data loss bug that was really user error.
Soft deletion has obvious drawbacks but is usually far less work than implementing equivalent functionality out-of-stream, with verbose logging or some such.
Retrofitting your app and adding soft deletion and audit trails after the fact is usually an order of magnitude more work. Can always add it pre-launch and leave it turned off.
If performance is a concern, this is usually something that can be mitigated. You can e.g. have a reaper job that runs daily and hard-deletes everything that was soft-deleted more than n days ago, or whatever.