I don't have much experience in project management, but I think I have seen over-communication in projects, e.g. when I have joined a project for charity -- some self-organized group. Well, actually, I think that voluntary projects is the kind that is easily over-communicated.
The problem is that: all participants are volunteers so it's hard to enforce decision. People just love to discuss things, express ideas, but it seems like it's never coming to commission. Because we have no clear deadline, the work doesn't get paid, and all of us have "brilliant ideas" to make them real before the project comes to the end. As I look at it now, it might be a lack of leadership, which was responsible for that.
Another reason which is possible: to say is easier than to do, and people love to do easy things. For example, in an open-ended project, it's very tempting to collect lots of information that you'd never use. For example, to create a new product, which can take several years to be on the market (I haven't been there, but one of my friends has). The investigating phase is spread over a long time, which may be related to the fact that collecting market data (user needs, similar products,...) is far easier than "inventing" a new thing.
In short, communication isn't good or bad. It will be good as long as it concentrates into the problem, and not break the predefined schedule.