Initially I had a strong reaction against what you're saying here, but I see you chose your words carefully, saying gov projects "end up with bad developers on projects with too many owners". Sadly I have to agree, since I am in that world in the federal gov and see it first hand. But there are many highly talented developers here! They typically don't stay on projects long enough, so "end up with..." is exactly right.
And that does tie in to your point that "to get good software, you need good developers", so it's a never-ending challenge trying to find and keep those 10xers engaged and happy with their work so they tend to produce that 'good software'...