You want 80% of public organizations to fail, too? That gets pretty expensive for the taxpayer. Allowing private organizations to do the failing is cheaper. Constant failure is good. Let's not forget that 99.9% of all species that have ever existed are extinct. Would the world be better off if trilobites still dominated things?
But "failure" in the public sector simply results in raising taxes repeatedly to prop up the "failure", so it doesn't exist, see? In the private market, eventually you'll stop getting financed but not in the public sphere.