The architecture is sound - typically called ELT these days. Dump contents of upstream straight into a database and apply stateless and deterministic operations to achieve the final result tables.
SQL server is where this breaks though. You'll get yelled by DBAs for bad db practices like storing wide text fields without casting them to varchar(32) or varchar(12), primary keys on strings or no indexes at all, and most importantly taking majority of storage on the db host for tbese raw dumps. SQL Server and any traditional database scales by adding machines, so you end up paying compute costs for your storage.
If you use a shared disk system with decoupled compute scaling from storage, then your system is the way to go. Ideally these days dump your files into a file storage like s3 and slap a table abstraction over it with some catalog and now you have 100x less storage costs and about 5-10x increased compute power with things like duckdb. Happy data engineering!