This doesn't make it particularly usable as SSO...
>Good network design costs a lot of money to set up, particularly to limit the scope of an attack (e.g. because the VPN software had a vulnerability), but it's orders of magnitude better in the long run than to outsource core IT to some incompetent fools with subcontractors.
This is exactly my point. Most businesses not not have the resources to maintain this level of infrastructure.
Additionally, I'm personally of the opinion that walled gardens with VPN entry points are a particularly good choice for modern businesses these days. Even the White House OMB is pushing the beyondcorp model in their recent recommendations for ZT.