The only situations? What about daily changing of clothes, bathing, sleeping? Do you expect the computer to track Picard while he's sleeping for 8 hours, with his combadge 2.01 meters away on his dresser?
First, we all know Starfleet officers sleep in their uniforms. But regardless, to your question "do we expect the computer to track Picard while he's sleeping for 8 hours with his combadge 2.01 meters away on his dresser?"
I do not believe it unreasonable to answer "yes" to that question (and I won't even be mean and pull up screencaps showing Picard's dresser is less than 2 meters from his bed). There's no harm in doing the "extra" tracking, given all the times it could come in handy.
Tracking the biosigns for landing parties or away teams is a good idea, but doing it nearly continuously while aboard ship is excessive.
You wouldn't think so if you were benefitting from it to track down a saboteur, mutineer, possessed crewman, or Worf.