Very thoughtful insights from someone who doesn't understand that a lack of thoughtful insight isn't the problem with our bloated and inefficient bureaucracies, and therefore fails to address those problems. You don't turn a bunch of bureaucratic lifers into tech-esque startup-minded types with teaching, you need new people and new structures to support and incentive them.
Right now, ass-covering and stasis are rewarded, the rest is not. Focusing on the results of bad behavior and not the roots will always fail.