I disagree. The quality of proposals is getting worse. There's a horrifying cycle of cronyism, lack of managerial skill that is going into science. People are promoted into research positions based on the impact factor of the journals they publish in, not the quality of their work. High impact factor journals publish things that are more likely to be scandalous than solid. The most important aspects of scientific success (versus excellence) is "were you your PI's golden child", and "just how lucky did you get"?... etc. etc. etc.
These trends are reflected in the proposals that I see getting pitched.
1) Who cares if "we" "lose the crown" to china? 2) I'm not worried about china, anyways, the scientific culture there is miserable and dastardly, and deeply entangled with the cultural value of "face" (I'm east asian, I think this applies to Korea and Japan, and troubling - increasingly in the US - see Hellinga, for example) and values Feynman's "extra integrity" less.
If you claim it has nothing to do with being entitled to money, then perhaps you should rephrase. Cutting and pasting what you said,
"First, the researcher has run out of funding ... the first is a travesty"
Which implies that a researcher running out of funding is a travesty. In the general case, as implied by your use of the indefinite article, that is not true.