no offense, man, it is just sound like you've never developed or deployed Enterprise Identity and Access Management. I envy you :) The keyword here is "Enterprise" - insanely complex [lets just don't touch whether such complexity is really necessary, it is just the fact of a design to meet any possible RFP in the space :) ] and [in many aspects as a result of the complexity] slow non-scalable products.
>The rest of it sounds like they botched making this system scalable
these systems just don't scale. In a BigCo with local replication to regional sites it takes noticeable time for such systems to perform. Trying to build such a website - well, it is a government procurement, though i don't think this is a worse one around (Halliburton's and the likes' cost+ in Iraq/Afganistan definitely bigger :).
>normally a single table with fields like
It is "normal" from another world :) The simple way you described would be done by some startup, and they would horizontally partition it when time come to scale. It is not the way the "Enterprise" things are done.