A mandatory CRAM-MD5 as recommended in BCP 46 could make sense
This draft (and rfc2554bis, which Alexey is editing) were both changed
to use DIGEST-MD5 based on concerns about security. That's the way it
was when I started editing it, so I'll change it only if there's clear
consensus about the preferred replacement.
Having implemented both client and server sides of DIGEST-MD5, I can't
say I'm very fond of it either. Personally, I'd be happy with TLS+PLAIN
or CRAM-MD5 (or whatever else makes everyone happy without a significant
security penalty; and I gather CRAM-MD5 is frowned upon in that regard).