A response posted based on my experiences while having a career in gov't (I'm recovering now, thank you).  There's a bureaucratic mindset involved - it's almost as if upper management is constantly looking for reasons to panic, halt work and revisit methods.  Yes, it's partially a 'Circle the wagons, we might get sued!' mindset, compounded by a severe lack of spine and common sense.  And there's the "golden handcuffs" syndrome - don't do anything that will imperil the retirement.  Your defense of the system has me thinking you're a current bureaucrat?
The mindset and actions of the bureaucracy are just one of the reasons that the populace is frustrated with gov't in general, and is one of the reasons we now have POTUS Trump ...