Being responsible for a subordinate committing a crime in private is another.
There was a string of COs that got canned for the condition of the USS Kennedy. The unfair part of that is that the Mavy cancelled a couple yard periods so the ship was in horrible shape.
Agree with your entire post.
Unfair though it may be, it gets back to the credo of being in command, something most politicians will never understand:
Whatever my unit does, or fails to do, is my responsibility.
Similar to saying, "if you like your insurance, you can keep your insurance...PERIOD!"