You have to draw a line somewhere with that logic, otherwise you'd have governments running their own fabs.

I'm fully in favour of governments doing everything from hosting up ( hosting, design, dev), with as much as possible open source.

For instance the French government fares well on this front, with most government services being developed in-house, and many parts are open source; in emergencies specific services were delegated to third parties ( e.g. vaccine bookings) so it isn't taken to a religious NIH level. However hosting is delegated to commercial entities.