For me it is like you have drilled a couple of holes to assemble two components and the screws don't go through the holes because they are slightly out so you just drill them both larger to overcome the mis-alignment which as you say is a bodge.
In my previous post I said the sloppy setting is good "when appropriate" or something like that, can we just discuss that for a minute?
I don't think anyone is using the sloppy setting for a structural joint when making furniture - say between a stretcher and table leg. That would be silly, but you can use the reference pins/paddles and fence to get proper alignment here.
The sloppy setting is for carcass construction or edge jointing - for a plywood box you use the pins/paddles and tight setting to reference one or both ends, then mid panel joints can use the sloppy setting. Does the loss of strength from a "loose" joint cause any issues here? I doubt it, you've got your edges lined up nicely, the mid panel dominoes prevent the top/bottom from bowing and keep all edges lines up. Glue and/or screws keep everything together and solid.
For edge jointing the dominoes don't add any strength anyway, they're purely for alignment in the vertical plane so you get a flush top surface. All your strength comes from the long grain glue joint, the dominos are doing the same job that biscuits would, just an alignment aid. The sloppy setting can speed up the job and make life easier.
As MikeK said, it's entirely possible with a sharp pencil and careful measurement to do away with the sloppy setting entirely, no-one's forcing you to use it. I've made plenty of things with and without the sloppy mortises, I just use it to save a bit of hassle marking up when it's not critical to have the tight joint.
Let's go back in time a hundred years or so. You want to make a mortise and tenon joint. You use a marking gauge and a pencil/knife, maybe also a rule. Everything is marked up manually, cut by hand and fettled to fit. With similar care in layout and measuring the Domino can be an incredibly precise tool, but it still depends on some amount of skill in use. Use a CNC if you want to remove any chance of human error in measuring and layout!
Anyway as I said before, it's a difference in philosophy. Maybe we're just expecting different things from the tool. I used to have a bench top mortiser (got rid of it to save some workbench space) - that also required measuring/marking and working to a pencil line!