The problem is a speed accuracy trade off. With people under stress and rushed, you will get accidents - even with folks glowing bright orange.
The problem starts further back than that, with a lackadaisical approach to the Four Rules. Once you start saying things like, "In the real world you won't always have time to identify your target..." -- you're headed for a mess like this. Low expectations about safety tend to lead to poor safety performances.
No matter what the course of fire might be, the instructor should always
require students to identify the target before engaging. That's an engrained safety response that's absolutely critical in the real world where you can't just tape the target and have a do-over if you get it wrong. If you're training for the real world, you should train for the real
world -- the one where it's both tragic and expensive to shoot a no-shoot.
Unfortunately, basic safety awareness increases times and reduces the brag factor, so it'll never fly at the high testosterone end of the market.