There’s a perverse sort of transaction going on: you receive welfare in exchange for abasing yourself in front of a bureaucrat, acknowledging that the bureaucrat has the right to decide whether or not you belong to The Deserving Poor, and admitting yourself to be Deserving.
The system is abusive... Intentionally... it's goal is to "improve the numbers" by pushing people out of the system (onto the street, onto relatives, suicide, illegal jobs, whatever).
One of the reasons I'd ideally like (in that magic fairy land we can't get to from here) small, cohesive, homogenous communities to be the ones that take care of each other, instead of relying on some sort of centralized authority, is because it allows the community to set standards for morality and behavior - not just for the poor but for everyone. When you're dependent on a group, you're accountable to that group, and often held to a higher standard than you might hold yourself as an individual.
Wanting a bureaucrat to evaluate and judge welfare recipients worthy or unworthy is probably just that same desire for accountability - if you're drawing down the resources of a broader, nationwide group, you should somehow be held accountable to that group.
This isn't a bad instinct to have, but it's impossible to implement at the inhuman scale of federal and state governments - the welfare recipient doesn't feel particularly accountable to the abstract community of 'America as a whole', and 'America as a whole' has no shared standard to hold the individual to. So instead we get Byzantine shaming rituals that just waste everyone's time and money.
I was hoping the White House's Office of Faith-Based and Community Initiatives could lead to some interesting changes here, but unfortunately that's largely gone nowhere.
I do think there's something to be said for cohesive groups, but moving between them is quite hard if there's no higher-level safety net from some more neutral source like the U.S. government. I know more than one person who wants to leave a church they don't like or believe in theologically, but stays because they're not sure how they'd replace its social/economic network. Especially the case with groups like the Mormons who combine a strong internal network with shunning of people who leave, making the drop-off in support you'd get by leaving seem like a daunting cliff.