Responding largely to the linked article, you can't just ignore the massive increase in funding and associated output that occurred. Scaling almost any system up will be expected to result in creative new failure modes. It's easy to observe that a system isn't great and suppose that removing it would improve things but this very often isn't the case. Democracy is one such example.

There's also the publishing ecosystem that developed around the increased funding. It isn't clear to me why any blame (if it's even valid, see preceding paragraph) should be laid at the feet of the practice of peer reviewing publications rather than such an obviously dysfunctional institution.

Even if we accept the way in which publications have been undergoing peer review to somehow be the root of all evil (as opposed to the for profit publication of taxpayer funded work) - there's more than one way to go about it! A glaringly obvious problem, mentioned in the linked article yet not meaningfully addressed that I saw, is that peer reviewers aren't paid. If this was a compensated task presumably it would be performed much more rigorously. Building inspectors aren't volunteers and they seem to do a good enough job.