I would agree entirely that there is too much secrecy running amok in the government. The "war on terror" has been a wonderful excuse for people to cover their arses by stamping codewords and caveats on reports of mistakes and malfeasance. But it is not just keeping secrets from the public that hurts. One of the more important roles of "official secrecy" is keeping secrets from other parts of the government -- particularly ones charged with your oversight or who could put pressure on you.
When I worked in compartmented programs there used to be a saying. "SCI doesn't mean never having to say you're sorry. It means never having to say. Period." We used to apply this philosophy most stringently against perceived enemies *within* the government and military. We used to routinely cover intelligence blunders by reciting "need to know" like a mantra. How DARE that Admiral ask us questions! This is SENSITIVE information! You can't trust anyone with budget authority.... Stamp it "Top Secret Umptyfrantz" - no one on his staff is cleared for Umptfyrantz!
Secrecy is just another tool of bureaucracy. People who run secret programs often claim that secrecy is precisely what permits them to be successful and effective. Of course, if you ask them to prove they ARE successful and effective they'll tell you it's a secret.... just take their word for it. People often wonder why "information sharing" is so hard to accomplish. Why can't all these agencies just "talk"? Because when you talk people learn about you, and they may just decide you are not as valuable as your budget would seem to indicate.
We need a serious, long-term, top-to-bottom review of our "secrecy" policies -- all the way from authorization for compartmentations down to the FOIA act. The 'system' has become so fractured and abused that it is no longer a system. It is not just a matter of keeping the public informed. Even within the government oversight and management are stymied by the proliferating mess of "secret this/secret that" w'e've got.
But I doubt any progress will be made.