I think suspicion of bug bounties even from organizations who would clearly benefit the nost from doing them right are well founded and you are over simplifying the situation.
Every organization includes a mess of situations where the overall best interest of the organization no longer comes through. Groups and individuals don't want to admit mistakes both personal and in wider senses and have alliances, competitions, team and organizational loyalty that twists their behavior.
A lot of organizations know they would benefit from having a proper whistle blower program and then proceed to crucify the first person who uses it.
