If you're using your company's network, then they have every right to monitor all of the activity on it. They're trying to protect trade secrets, future plans, customer data, employee records, etc. from attackers who would use that information to do harm to the company, its customers, and its employees. If you don't want your employer to know what you're doing, then don't use the company computer or company network to do it. And while you may think that you're too tech savvy to fall prey to malware 1) not everyone at your company is, and 2) no amount of savvy will protect you from all malware, especially ones that gain a foothold through an unpatched exploit. And there's also that whole other can of worms: malicious employees.
It isn't a question of whether they're allowed to do it, it's a question of whether they should do it.
It's ineffective against insider exfiltration of data unless you're also doing body cavity searches for USB sticks, and if you're at that point then the sensitive network should not be connected to the internet at all.
And it's similarly ineffective against malware because TLS is not the only form of encryption. What difference does it make if someone uploads a file using opaque TLS vs. uploading an opaque encrypted file using MITM'd TLS? Banning encrypted files, even if you could actually detect them, doesn't work because they're often required for regulatory compliance.
It isn't worth the security cost. The situation in the article is bad enough, but consider what happens if the MITM appliance itself gets compromised when it has a root private key trusted by all your devices and modify access to all the traffic.
I dunno. I know plenty of people who might want to work on an Excel spreadsheet at home over the weekend and so might e-mail it to their personal e-mail account. They would almost certainly reconsider, however, if it required copying that spreadsheet to a flash drive that they then had to hide in their ass, though.
In that case, it sounds like the device is effective after all.