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Because so much of the function of the department is social. They create rules and communicate them. Their approval is often required on projects but they add little value otherwise. The position exists to provide cover.

Often we think security as a team in a constant battle with hackers and rival corporation forces but in reality you will mostly be spying on employees and setting policy.

It's better remunerated (to the extent that it is, obviously some people make fortunes in security) because products make money and security costs money.

As a security engineer, i dont think so. Its definitely different, and because there are less of us it makes it seem we are more specislized. However i've met tons of SWE working on hard problems that don't make sense to me, and can code circles around me. The level of technical challenge in both fields depends what you are working on. Plenty in security is also trivial.