It does unfortunately mean that sometimes `*` will work (and produce an incorrect result) rather than immediately failing loudly with a clear error message in the context in which it's actually intended to be numerical.
More broadly this is the same argument as whether overloading `+` for strings is a bad idea or not, and the associated points, e.g. the fact that this makes it non-commutative - the same all applies to `*` as well, and to lists as much as strings. At least Python is consistent here.
Although there is one particular aspect that is IMO just bad design: the way `x += y` and `x = y` work. To remind, for lists these are not equivalent to `x = x + y` and `x = x y` - instead of creating a new list, they mutate the existing one in place, so all the references observe the change. This is very surprising and inconsistent with the same operators for numbers, or indeed for strings and tuples.