"I hope by now you’ve seen the irony here. Our government has likely forked over millions of our tax dollars (how much did Obamacare cost?) to private contractors in exchange for a site so utterly dysfunctional that it can’t even serve its purpose of collecting those very tax dollars! That’s how broken our system is."
Our system is so broken that most new corporations are formed in a company with _no_ space available for your business or for you to live, only a person who sits and answers a phone for a few thousand or hundred thousand companies to prove an 'office location' or whatever wording.
Delaware doesn't care because they get some taxes, what you'd really call a payoff for being a tax protector.
There were pretty heinous problems with the situation at hand before OP opened his web browser.
That I can choose at which 'location' I incorporate for something that is immaterial?
Yes, as I write this, people are getting stabbed, shot, raped, killed by cancer, and mangled in car wrecks. And that's way worse than having to hassle with a broken web site.
But there are people reading this board who can actually build functional web sites, and who are appalled that the government managed to mess up so badly. That's the point.
Delaware and Nevada want to attract business so they have better prices. Regulation and law allow it, and this is healthy to have states competing for business.
If this competition did not exist state licenses and taxes would be like paying for broadband from one provider and probably thousands a year to license instead of $300 and taxes would be immense.
Small business especially already pays higher taxes so really any advantage given to small business really helps the economy as a whole even if that means lower taxes by registering in another state. The only way to fight the market is with regulation or competition, the latter always means cheaper prices and will allow more small business.