Spacing is still common here in the south. Now that we have moisture meters and better industry guidelines for installing wood flooring, we don’t do it as often as in the past but there are times when spacing is needed.
Your installers may have been at the wood floor distributor’s open house in New Orleans this year. Before the boiled crawfish, poboys and fried oysters were served, the owner had a one hour discussion and slide show on wood flooring and moisture problems. The link below shows his presentation regarding spacing.
http://www.crescenthardwood.com/DYK/SPACINGAFLOOR.pdf