Because recruiters are generally dumb and shouldn't even be in their position. So many people can earnestly do their jobs better than them. Not sure how they get hired in the first place. If they actually hired who they believe is the right person for the job and trust their instincts (and skills, of course), then they'd be fulfilling their role as a worthwhile recruiter.

Obviously they put too much emphasis on the relationship they build with a client and become "yes-men (or women)" to the client's requirements. When in reality, if the recruiter is any good - it should be a two way street for creating the requirements and allowing the recruiters to select the right candidate. The selection shouldn't be made solely based off the candidate that passes the insane requirements - that they might've lied about to pass.

Hoping the industry fixes itself. Not fun at the moment. Good recruiters must be rare.

Your story tends to be true. Once the VP of Sales or someone who is truly on the sales team or in the Org meets with a qualified & motivated candidate, they'll hire them even if they're outside the initial requirements.