Every single example you name happens just the same under regulation / government bureaucracy. Replacing private services with government services or tight regulation of industry doesn't improve error rate nor incentives. Consider the three key differences:
1) When the regulators / the bureaucracy causes you trouble, it is legally and culturally considered your own fault - "you filled the form badly" or any other such. The error rate gets worse, if anything.
2) When the regulators / the bureaucracy causes you trouble, the media has little incentive to hound them persistently. Private companies buy advertising, and the media can push them until they do; conversely the government doesn't buy advertising, but instead can launch endless "lawfare" against journalists, thus making it rather unprofitable to hound them over - what legally and culturally is "your own fault" anyway. That's mis-aligned incentives.
3) There's no competing government to come to, unless you're willing to uproot your whole family and move abroad. And in particularly egregious cases even that is either illegal or made difficult and lengthy - hey, we're having a pandemic right now.
That we know and obsess over the mistakes and problems caused by private service providers is prim and proper - as it is thanks to the interest of journalists and aligned incentives. The same would largely pass unnoticed and at larger scale, under regulation / bureaucracy. So let's not go backwards, shall we?
The third option, un-coordinated / de-centralized services are technically feasible, but quite hard to successfully build for organizational & financial reasons. Presumably we will get there eventually.