We're working on a project that requires part of its circuitry to be galvanically isolated. Easy answer: A DC-DC isolation module as made by Murata, Recom, TI, CUI, and many others. They come in various flavors of input voltages (3.3, 5, 12, 15, and 24 are common) and output voltages (same choices) and you can often have mismatched input and output voltages so you can obtain different supply rails than your existing power system. All well and good.
...except for two things. First, these devices are completely unregulated. I'm not talking about "they're unregulated until you pull some minimum current", I'm talking COMPLETELY unregulated. The curves in the spec sheets show a basically linear relationship between output current and output voltage - the very definition of an unregulated source. OK, that sucks, but at least if you know that going in you can add a downstream voltage regulator.
...except for the second thing: Those output voltage options I mentioned above! If you have an unregulated supply, you're likely to use a voltage regulator. Voltage regulators need some overhead to operate. Even LDO regulators need almost a volt, and traditional regulators need 1.5-2V to be safe. But instead of rating these DC-DC modules with that in mind (say, 7V output voltage so you can safely run a 5V regulator), their nominal output voltages are right at the traditional rails of 3.3, 5, 12, etc. Leaving no headroom to run a regulator.
If they wanted to produce a supply device at traditional voltages, they could have included actual regulation. But they didn't. Conversely, if they wanted to keep them simple and not have regulation, fine - they could have increased the nominal output voltages to make it easier to use a downstream regulator. But they didn't. Instead, they took the worst of both worlds - the least optimal of every option - and built that.
Getting back to the title: I must be the one missing something here, because virtually all of the DC-DC module manufacturers build them this way. So what is the typical way to use these? I've had precious few projects where the supply rails could just vary unpredictably all over the place with no ill effects. At the moment our plan is to go to the next highest secondary voltage (12V) and use a downstream 5V regulator, but that dissipates 7V across the regulator and dramatically reduces the output current rating for a given DC-DC module package size and cost. And it could all have been so easily avoided.
What am I missing here?