I think it is not clear.

"They're following a proven effective model for the outcomes they are looking for."

That reads like just stating government perspective.

"We do ourselves a disservice by acting like there is some inherent flaw in it."

But this says something different to me. Because yes, I do see it as a inherent flaw if governments focus is on things that are mainly good for the government. Government's job should be focusing on what is good for the people.