Is this poor design or simply, not designed _for_you_?
I agree, its a royal pain to manage, and it might be overkill for a small shop trying to lock down their web server. Thankfully there are other solutions, and operating systems that may better fit your use cases.
https://en.wikipedia.org/wiki/Common_Criteria
If you are looking for a justification to excuse bad security practices, you won't find it in the origin story of SELinux.
I find it enlightening to read what kinds of justifications the proponents of SElinux use. It's never about the quality of the software; it's about how there's more band-aid tooling to make it easier to work with, or about how it's not as bad as it was, or that it gives you all these knobs and levers to have more control. It's not what you focus on when you're serious about quality software engineering.
Imagine if we were talking about something like Gnome or the Windows 11 interface: yeah, the interface is a real pain to navigate, but we added even more menus and buttons and the rightclick menu is twice as long now, so you can do even more stuff with it, and we even added Clippy back in to help you when you get stuck!
SELinux is designed to fulfill to primary goals. First, to secure the messy and complicated Linux architecture. And second, to be flexible enough to accommodate (highly) complex security architectures, as well as potentially unique and/or unforeseen needs. With that in mind, it's difficult to imagine any equivalent being practically more simple and/or elegant than SELinux.
The primary problem with SELinux is the broad lack of experience amongst users and sysadmins, opaque documentation, and primitive tooling. And in many ways, it is a negative feedback loop. If SELinux was used everywhere, improvements to its documentation and tooling would naturally follow.
You're describing the linux architecture as messy and complicated, but that describes the SELinux architecture as well; if complexity & mess are bugs that should be squashed in pursuit of security, SELinux is ill-suited to the task.
> And second, to be flexible enough to accommodate (highly) complex security architectures, as well as potentially unique and/or unforeseen needs.
>> It's technically capable of any kind of restriction a bureaucrat might envision
Sounds like we're on the same page there. Or at least looking at the same phenomenon.
Your last paragraph is definitely outside the pattern of justifications I listed, but it's not much better: you're just blaming the users. Sysadmins use all kinds of complex software to accomplish any number of delicate tasks - if the tool is well-built, they don't tend to complain that it isn't. SELinux is not. Don't blame the user when the tool's at fault.