> Because other government programs waste money, it must be okay that this one did too?

No, but it's unfair to single out one program when they all do that.

> This attitude of "well it was for a good cause [...]"

That is not my argument. I don't see why a study cannot include a product being built and used by the public. Unless there's a legal argument where "study" is a specific legal term, not "we'll do things to learn about this topic".