Yes, that's globbing, but I was wondering what the OP meant by argument expansion. It could be just globbing, or include globbing but extend to variable expansion, braces, command substitution... It's hard to put a case that having the shell do these things is the right way to do it without understanding the OP's point clearly.

Minor point: if the glob doesn't match it isn't expanded. Sometimes useful. I rarely escape scp commands for instance.

See `failglob' elsewhere on this page. What you suggest is sometimes useful but also sometimes wrong and hard to spot because the glob might match locally and one not realise.