I do not disagree with the statement of incompetence. I find it difficult to buy in some prior events. Take Iraq, clearly some people know there were no weapons of mass destruction. Take Pearl Harbor, same kind of fraud perpetuated by some people who knew something. We are not talking about commoners with prior knowledge but people in positions of power.
On a side note and in general, I have a problem with #1 because I do not think doing nothing is wrong. I only subscribe to the notion possessing prior knowledge and doing nothing is wrong if you are government because government is supposed to have a duty and obligation to protect life, liberty, and property. It would seem at a minimum government has an obligation to notify even if no other action is taken.