Wasn't it obvious that USCIS has not utilized modern technologies to boost efficiency, but use its own inefficiency to boost its size?

Any decent large corporation of this size should handle a large number of customers with ease. That number, I guess, would be orders magnitude more than USCIS' incoming requests. You may argue the case for USCIS is more complicated. Granted that, I still think the amount of work is much larger than USCIS.

[1] "USCIS consists of 19,000 federal employees and contractors working at 223 offices around the world." https://en.wikipedia.org/wiki/United_States_Citizenship_and_...