Very likely these apps are just spammed and you don't get to see the rejected apps. As for why the process isn't catching such obvious flaws - I'd say there's

Very likely these apps are just spammed and you don't get to see the rejected apps. As for why the process isn't catching such obvious flaws - I'd say there's no strong incentive, the only feedback I've seen consistently is related to protecting their revenue cut - the rest is much more random, especially after initial review.