This is why I think big vs little government is really missing the forest for the trees in a lot of contexts (unless your overall goal is to minimize taxes and regulations at all costs). It's really a debate about the nature of bureaucracy. Process vs nimble. You can organize things to promote either, depending on your actual goals.
Unfortunately small government activists have recognized this and have enacted policies that promote incompetence as much as possible. "Good enough for government work" is a choice, not an inevitability.