Recycling has built up such inertia as the "moral" path, regardless of its inefficiencies for most materials, that it's become an unsustainable clusterfuck that we can't move away.
Where I live, it's been codified- municipalities must recycle, and also must discourage landfill-bound waste. The result is that I've been issued a 64-gallon mixed-recycling bin that is picked up once a week, and a small 36-gallon trash can that's picked up every two weeks. There's two people in my household and we both are very conscience of being wasteful- not as some kind of environmental whatever, but it's just in our moral framework. A 36-gallon trash can holds about 2.5 full kitchen garbage bags in it, so if we produce more than 2.5 garbage bags of waste in a 2-week period, we have to hold on to it for another garbage pickup (reducing our available volume for that period then). Anything out there then sits in the sun for 2 weeks stinking and attracting raccoons/rodents until the next pickup.
The result? Anything remotely resembling "recyclable" gets tossed in the recycling bin. Food/grease on it? Put it in the bin. You know where the stuff in that bin goes now? It goes to the recycling facilities and then sits there in huge piles because no one will buy it anymore because the whole system was propped up on bullshit the entire time.
To top all that off, the law also prevents these now-inundated recycling facilities from moving their material to a landfill for proper disposal. So it literally just sits there and we have absolutely no solution for it. It would be political suicide to advocate the loosening of recycling laws, no matter how broken they are, so you'll never have a representatives willing to fix this problem.