The Formula One constructors' championship leaders have been criticised for their handling of the growing rivalry, which intensified after a collision at the Belgian Grand Prix on Sunday.
Eddie Jordan, a former F1 team boss, labelled the team's management "weak" for not taking control.
But Coulthard, who won 13 F1 races during his career, said the Mercedes rivalry should be welcomed, not criticised.
"We either accept the situation as we have it, with all the problems it throws up for Mercedes, or we go back to number one and number two drivers in the best car; a re-run of [Michael] Schumacher's most dominant years at Ferrari," Coulthard wrote in the Daily Telegraph.
"If Mercedes had adopted that approach, the championship would effectively be over.
"And if they lose it to a late-charging Daniel Riccardo? As unlikely as it seems, so be it. It would be for the good of the sport.
"Lewis and Nico could well collide again, with huge ramifications for the championship.
"Given the entertainment it is giving us, it seems churlish to criticise the people who made such a situation possible."
Coulthard described the situation as "unmanageable" after Rosberg and Hamilton collided on the second lap in Belgium, leading to the Brit suffering a puncture before retiring soon after.
Rosberg went on to finish second, extending his lead over Hamilton at the top of the drivers' championship to 29 points.
Coulthard said it was impossible to "premeditate giving someone a puncture".
The 43-year-old believes there needed to be a way to recognise the enormity of the incident.
"Through no fault of Lewis's, he has been dumped out of a race and lost a whole bunch of points in the championship," Coulthard added.
"There must be a way of recognising this is an extraordinary incident with consequences far greater than a bump lower down the field."