Cryptographic common sense is that if you use an "algebraic" generator, you feed the output through a "chaotic" one at the end. This can't possibly harm security (as long as the output transformation doesn't depend on secret state) as there's a reduction in which the adversary just does the transformation themselves. This is even more important if the algebraic transformation is efficiently invertible in principle, for example if someone has extra secret knowledge (such as the dlog of the base point in use).

If they'd used Dual-EC followed by SHA1 or something that would have not only been better according to folk wisdom, and demonstrably no worse for security (and costing very little compared to the EC operations) but it would also have shut down a lot of conjectured attacks that one could do with twiddled constants.

Yet for some reason, Dual-EC decided to go with an algebraic approach without a "chaotic" output transformation, which is either extreme incompetence or strong evidence that someone is up to no good.