As someone said earlier in these comments the software is required if you want to operate with government entities. So until that requirement changes it is not going anywhere and continues to print money for the company.
But then, if what you say is true and their software is indeed mandatory in some context, they also have no incentive or motivation to care about the quality of their product, about it bringing actual value or even about it being reliable.
They may just misuse this unique position in the market and squeeze as much profit from it as possible.
The mere fact that there exists such a position in the market is, in my opinion, a problem because it creates an entity which has a guaranteed revenue stream while having no incentive to actually deliver material results.
If the government agencies insist on using this particular product then you're right. If it's a choice between many such products than there should be some competition between them.
From experiencing different AV products at various jobs, they all use kernel level code to do their thing, so any one of them can have this situation happen.
You, the admin, don't get to see what Falcon is doing before it does it.
Your security ppl. have a dashboard that might show them alerts from selected systems if they've configured it, but Crowdstrike central can send commands to agents without any approval whatsoever.
We had a general login/build host at my site that users began having terrible problems using. Configure/compile stuff was breaking all the time. We thought...corrupted source downloads, bad compiler version, faulty RAM...finally, we started running repeated test builds.
Guy from our security org then calls us. He says: "Crowdstrike thinks someone has gotten onto linux host <host>, and has been trying to setup exploits for it and other machines on the network; it's been killing off the suspicious processes but they keep coming back..."
We had to explain to our security that it was a machine where people were expected to be building software, and that perhaps they could explain this to CS.
"No problem; they'll put in an exception for that particular use. Just let us know if you might running anything else unusual that might trigger CS."
TL;DR-please submit a formal whitelist request for every single executable on your linux box so that our corporate-mandate spyware doesn't break everyone's workflow with no warning.