Possibly. I have no issue at all with known malware being auto quarantined. The problem is that a lot of files detected by antivirus software are not actually malicious, for example PUPs, or installers which come bundled with or can download and install other software.
While it would be good if known malware was auto quarantined and users were prompted when something that isn't malicious is detected, there is a big issue with that. Very often, harmless PUPs are wrongly detected as malware. This would lead to files which aren't threats, being auto quarantined too. I don't care if keygens and cracks are auto quarantined, but I do care, if some safe driver updater software is. As a result, I think the best approach is to have auto quarantine as a default setting, but for there to be the option for advanced users to disable it.
The argument against this, put forward by AV companies, is that some users, when prompted when malware is detected will choose to whitelist it and infect their systems. But, if auto quarantine is enabled by default, I don't see this as too much of an issue. Even with auto quarantine, people can disable the real time protection and run malicious files.