Earlier quoted context omitted.
Our experience is that it is actually an excellent sanitary decision. We are using multiple builders with fixed GCC releases (for RHEL5, RHEL6 etc. flavors), and yes it means fixing additional warnings when we have to introduce a new architecture. But I can not count the number of serious issues we avoided by spotting and investigating warnings.
That's fine and dandy. It's not fine when it's an open source project from three years and four compiler versions ago that you want to compile, and find -Werror on every line invocation in a Makefile. What you build with in-house for development/test-farms is not what you should ship as default to users of your project.
If it's on every line and not kept in one place in $(CFLAGS), you have bigger problems.