Tim, I know you see this kind of request that Mark made often. I thought that I would add some perspectives to this based upon my own experience. I am sure that you have thought about this issue much more than I.
First, I really like that Moodle does not allow one to add multiple copies of the same question to an exam. I personally believe that if Moodle did, the probability of making a mistake on an exam's design would go up. I came to Moodle initially with Mark's request, but as I have used Moodle for nearly five years, I like this "feature" that you cannot add a duplicate of a question by mistake.
Duplicating quiz questions is really not that time consuming. Furthermore, it provides a natural opportunity to at least slightly modify each form of a question so the students sees different questions. The key to doing this is to make sure that your initial question (depending upon question type), is good (e.g., a calculated mulitchoice, which can be a bit complex in its configuation and equations). Yes, there will always be someone who really wants identical questions, but of course, this is the quickest form of a duplicated question.
I wonder, however, about the Moodle database and its growth with certain types of questions, in particular, calculated questions. If someone were to create a "calculated" question, let's say with 10 variables, and with 50 values for each variable, this would produce 500 values in the database (if my thinking is correct). Then, if you duplicate this question, let's say 50 times, you are now up to 25,000 values in the database. What is this doing to the size of the database? So one worry about it? Might it slow Moodle down? Is it adding, maybe 50MB of storage for this one type of question? Or is this issue insignificant relative to mySQL in the over scope of what the database is storing?
What do you think?