Yes, it's bad when bureaucracy means that individual bad decisions are made. But casually saying "oh, well, this is idiocy, the government doesn't care about security" ignores the fact that organizing the regulation of human behavior is immensely costly, and the government needs to optimize on those costs.
A good dev analogy is using a library function vs rolling your own. The government's library is the list of things that its own engineers approved. The equivalent of rolling their own is for some individual auditor to make an independent decision to deviate from the list. Now, it might be that you can squeeze out an extra tiny bit of performance[/the government can squeeze out some extra security] by rolling your own sort function or whatever, but most wise devs will balance that off against the risk of introducing extra bugs, the extra writing and maintenance time involved, etc.
Reality is that this sucks. It would be amazing if it wasn't actually super-super costly to organize human beings to all point in the same direction and make sure that people don't cheat. Government would be a lot cheaper and more efficient. But, alas, reality does suck.