How screwed up is our government and legal systems? All together now, "How screwed up is it?" It is so screwed up that Elena Kagan, President Obama's Supreme Court nominee, is being hailed as an ideal candidate precisely because she has little judicial experience. She will be holding a lifetime position that affects the lives of every person in the U.S. for the next 30-40 years yet we know very little about her reasoning abilities or legal propensities.
By comparison, would you want a physician who was dean of Harvard Medical School, has done research at the NIH, and done policy work for the government, and suddenly expect him to perform a liver transplant or take care of ICU patients? You would wonder about his medical judgement and clinical abilities since he has been away from patient care for so long.
Perhaps Obama is trying to surround himself with inexperienced people, as he himself is and demonstrates that fact every single day.