Part of the problem is that we've been conditioned to trust university research. It is based, after all, on the presumably lofty motives of its practitioners. What's not to like about science carried out by academics who have nobly dedicated their lives to understanding the unknown, furthering knowledge and serving humanity?
Within academia's ivied walls (where I spent more than two decades), the view is a bit different. The university is not a peaceable kingdom, and life is far more Hobbesian. Henry Kissinger was on to something when he observed that "university politics are so vicious precisely because the stakes are so small." In contrast to the academia-vs.-industry trope, hubris, self-interest and ambition are not checked at the university door; arguably, they are essential for admission and required for professional success.
University researchers are in a constant battle for recognition and the rewards associated with success: research space, speaking engagements, funding and autonomy. Consequently, while academic research is often described as "curiosity-driven," the reality is messier, as (curiously) many researchers tend to pursue the trendiest technologies and explore topics that happen to be associated with the most generous levels of research support.
Moreover, since academic success is determined almost exclusively by the number and prestige of research publications, the incentives to generate results are exceedingly powerful and can encourage investigators to see patterns that may not exist, to disregard contradictory observations that might be important, to overvalue data that might be preliminary or unreliable, and to embrace conclusions that deserve to be viewed with far greater skepticism.
Does all this mean the system is broken? Surprisingly, no. Ultimately, science tends to be self-correcting, and flawed ideas are eventually recognized and disregarded. There really does seem to be a marketplace of ideas, and many good ideas eventually gain traction and persist, while many attractive but incorrect hypotheses eventually fall under the weight of compelling evidence. The system is far from perfect -- especially with regard to the exploitation of the most junior (and most vulnerable) researchers, who support much of this ecosystem -- but like capitalism, it may represent the best available option.