How else would it work? The onus needs to be on someone to make sure we are doing worthwhile things. Like anything else in life, you need to prove you deserve the money before you get it. Often that means you need to refine your ideas and pitches to match what the world thinks it needs. Then once you get a track record it lowers your risk profile and money comes more easily.
Sounds sensible, bu the major unasked question it avoids is, was the current funding and organization structure of science in place when the past scientific achievements were achieved.
the impression I get from anecdotes and remarks is that pre-1990s, university departments used to be the major scientific social institution, providing organization where the science was done, with feedback cycle measured in careers. Faculty members would socialize and collaborate or compete with other members. Most of the scientific norms were social, possible because the stakes were low (measured in citations, influence and prestige only).
It is quite unlike current system centered on research groups formed around PIs and their research groups, an machine optimized for gathering temporary funding for non-tenured staff so that they can produce publications and 'network', using all that to gather more funding before the previous runs out. No wonder the social norms like "don't falsify evidence; publish when you have true and correct results; write and publish your true opinions; don't participate in citation laundering circles" can't last. Possibility of failure is much frequent (every grant cycle), environment is highly competitive in a way that you get only few shots at scientific career or you are out.