I think you're missing another two obvious explanations:
1. Lack of education when picking a tool (copy paste from bad SO answers is a frequent source of bad code).
2. Developers don't care. If it works, why bother wrapping your head the rest of the way around to understand why it works or whether it's secure?
> By itself, it is not an XSS. But if the backend is/was running Ruby on Rails (presumably some old version by now) then it could turn into an XSS due to a combination of features that all look superficially harmless.
Sure, ERB before RoR essentially had security turned off by default (as I noted). And this issue could happen with any other non-web system, turning into any other kind of vulnerability. This isn't a web problem, it's a system security problem. Bad inputs in a "native" app could lead to security issues in the output of apps on other devices. Badly implemented binary data decoders in a desktop application could do far worse than a XSS in the browser.
This problem is misattributed as a "web problem" because there are far more complete systems on the web than there are on nearly any other platform. It's like the tired argument that Mac is more secure than Windows, but Windows has historically had an overwhelmingly outsized market share, making OS X issues far less valuable to attackers.
> When I argue that the web is unsafe by design, it's because cases like that aren't rare, they're common.
I don't disagree that these issues are common, but I disagree that the web is unsafe by design. The web is a platform. If everyone wrote their Python APIs without a framework, I can guarantee they would be littered with security holes. If everyone wrote their own text renderer in C++, just displaying strings on the screen would be a dangerous task.
There are good tools that make it really hard to fuck up on the web. Seriously, try to accidentally have a XSS vulnerability in an isorendered React app with Apollo. The problem is folks that want to jQuery-jockey their way across the finish line and don't understand that they are making terrible mistakes.