You should not be amazed. Yes we'd prefer to have ski gods teaching all of our beginners. Yes, more skilled and more experienced pros do tend to provide better experiences for beginners and do tend to get better results than those with less skills or experience. But new pros have to come from somewhere. The point of a level 1 cert is to start new pros off on the right foot. It says they have the skiing skills and the teaching skills to provide a quality learning experience to beginners. This may not necessarily be the best quality, but it is enough quality to get the job done.
It may be helpful to understand the certification process as a roadmap instead of a stamp of approval. The things one has to do to get certified make one a better pro. But the main point of certification is that it provides a process for learning how to improve one's skiing and teaching skills and a road map for continuous improvement, especially after certification is obtained. This is most true for the level 1 cert. With that in mind there's a huge benefit for getting those who are enthusiastic about teaching, but who need the most help, into the program. Level one cert does not say much about one's skiing or teaching proficiency, but it says a lot about one's commitment to improve and their chances of being successful.
When I teach rookie pros who have no certification, (using the road map analogy) I have to teach them what a mountain is versus a road or a lake or a point of interest. After pros get their level 1 cert, I know that they know what all of those map elements are, that they have a road map and have actually unfolded it and read it. Now I can start teaching them about this mountain and that road and that lake and know that they have some context and a means of connecting the dots for what I present to them. With certification, I can communicate much more efficiently and effectively during staff clinics.
The fact that skid did not pass because he was not good enough to ski a double black with proficiency means that the skiing bar for level 1 is still relatively high for teaching beginners. If you want to set the bar higher than that, then you better start figuring out where the next batch of top pros is going to come from. Because I hope to retire soon and I need someone to take my place. The system is not perfect, but it does work.