cedar shake roof nail penetrations

okay, I think we can all say we’ve seen plenty of nails penetrating the roof decking from nailing of roof shingles. I’m sure we’ve all bent a back or shoulder into our fair share. but has anyone seen anything quite like this? should this be a defect? It was a cedar shake roof and every nail they used to fasten the shingles are visible.

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See page #12: http://www.cedarbureau.org/cms-assets/documents/roof-manual-full-09-2014.pdf

So in your area wood shakes are installed on SOLID wood sheathing versus the typical 1x4 ship board strips??

How well do they hold up that way?