Eventually I came to this explanation: their culture is obsessed with perfection, from perfectly paved roads to perfectly preserved temples to perfectly presented food, etc...but this pursuit of perfection in the hands of bureaucrats leads to processes where everything is captured in detail, approved by multiple people, etc. Basically, in the eyes of a bureaucrat, 'perfection' is a rock-solid paper-trail rather than a frictionless experience for the citizens.
> ... than a frictionless experience for the citizens.
And this is spot on as well. Most Japanese barely understand the need for that; seeking better experience is, basically, seen as a sign of weakness. Way more attention and cost are spared for preventing what are seen as improper and illegitimate, than seeking paths of least resistances or goals at all. Everyone's process people always.