Well, you are running V5R4. Operations probably adopted the attitude "if
it isn't broke then don't fix it". Not knowing there's been hundreds of
integrity patches and whatnot put on. Or just redefining "broke" until
they have an excuse not to put on any fixes.
Since they stopped putting on fixes, they decided to apply them
permanently to save space. Reasonable.
When I first got an AS/400 it's version of RPG had a one file limitation.
Coming from a S/36 I started thinking they took modular programming a bit
too extreme. I could have redesigned all my applications to fit. However
it was decided to call it 'broke', call IBM and get a fix.