> We could assemble a panel of experts in the field, who have proven their merit by doing impactful research, and have them decide ultimately based on the merits of each proposal, the people who proposed it, the institutions backing them, the likelihood of success, whether they're worthy of funding. We should also make them explain as part of the proposal exactly how this will benefit not just their research area but also the broader community and world. Finally, we should meticulously track how they spend their money to make sure there's no funny business, and only give continued support to researchers who have proven they spend it wisely and their research"

This is not accurate. There is the first gatekeeper which is program managers and junior program managers which have to gloss over your project and pick you. They (especially the juniors) don't necessarily have a the sophistication to judge your project and so are easily swayed by hot topics or reaching claims of national security/health applications.

Grants get awarded to people in the habit of telling little white lies about what their research is good for, then its people who are awarded grants that get promoted, and then those are the people who are reviewing projects, so being dishonest becomes cultural. Disastrous for science.