While I agree that the system should honour the chosen settings (so if you say 
'manual time' that is really all you get), I would argue that all systems, 
desktop and server, should ship with a minimum NTP setup. If the load on the 
Ubuntu time server is of concern, then you could use the minpoll set to 10 
(1024s) or similar for it. See:
http://www.eecis.udel.edu/~mills/ntp/html/clockopt.html#server

Those with greater requirements might want to add more servers to
ntp.conf and some (like here in my university) may need to change the
time server to a local one due to a slightly strange firewall policy.
But I don't see why manual time should be preferred for any case other
than a complete lack of internet connectivity!

-- 
No obvious way to prevent ntpdate to be run when interface are brought up
https://bugs.launchpad.net/bugs/322518
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