My above post is not commenting on the validity of the regulations surrounding ITAR, SpaceX, etc, it was responding to the implication that this effort was politically motivated when it clearly was not.
I don't know how many other companies the governmental department was checking, and it's not really relevant, just like the naughty things other kids may or may not have done when you're explaining why it's not correct to punch another kid just because they didn't share their toys.
"It's hard" isn't really an excuse; other industries are held to pretty strict regulatory standards (the entire medical industry for example) and while there are violations and it's a lot of work to validate that a hospital and the doctors and nurses are meeting these requirements, they do it. There are times hospitals need to be corrected, but they still do it. Same with the legal field, same with engineering fields, etc.
So I'm not sure what exactly is meaning to be communicated here; especially with a company like SpaceX, I expect they should be able to follow the regulations and check their applicants appropriately, not just decide "it's too much work" and deny legitimate and legal candidates a chance for employment.