Defending the Rabbinate

The past few years haven’t been good for the image of the Modern Orthodox Rabbinate. From the Lanner scandal and subsequent OU cover-up, to the most recent frustrations with YU, it isn’t surprising to find Modern Orthodox Jews who are suspect if not disgusted with the institution of the Rabbinate. I’ve personally heard claims of malicious dishonesty, where if you’re part of the “old-boys club,” you can get away with whatever you want.
Most Modern Orthodox Jews will blame the “system” or Rabbinic intstitutions for perpetuating a corrupt system. The Rabbis are simply looking out for themselves, and so continue the patterns of dishonesty though their schools and organizations. But while there may be some merit to this position, it fails to address why such a system is allowed to exist and to continue. Assuming that the Rabbiniate is as bad as some people say – a presumptuous suggestion in its own right – then what would the factors be that caused this unfortunate situation?