Don't forget the Mosquito never became the mainstay of Bomber Command, this was because Mosquito's were not suitable for area bombing like the Lancaster was. It doesn't matter how much you try and hide it with yarns of dropping apples into pickle barrels the Americans were area bombing and they built B17's, B24's and B29s for exactly that purpose. If the Americans had of built Mosquito's then I expect they would have been used like the British based Marauders were used. I also think that national pride was always going to be in the biggest obstacle in this.
The originators of 'area bombing' (Churchill, Lindeman, etc) were not so squeamish, they called it terror bombing (and there was a lot of opposition to it). 'Area Bombing' was the propaganda or 'spin' version of the tactic.
Bizarrely, BC managed to achieve very good accuracy (even at night using first Gee, then Oboe, etc) by the end of the war when they wanted (though 'de-housing' still obsessed them, even way beyond it's use by date).
The RAF, though bomber obsessed (since the days of Trenchard) started the war with the intention of hitting key military targets (including oil funnily enough), when they couldn't live by day (no LR fighter) they went to night bombing, when they were lucky to hit within miles of a city.
A classic example of a tactic becoming a strategy then a dogma. Happens a lot, not just in the military. One bad decision, often originally a short term expediency forced by circumstances, takes on a life of its own. Then by the time it becomes a dominant dogma, everyone post-rationalises it, making up all sorts of nonsense to justify it. Then it takes an incredible amount of effort to unwind it.
The powers of cognitive dissonance are incredible, especially the organisational version.
Humans are incredible at sticking too and expending (right to the point of, and often beyond death) incredible amounts of energy and resources following their dogmas. A basic brain fault.
Bad organisational designs can amplify this tendency to absurd levels. In other words, no matter how non-rational an individual human can be, organisations can be far, far worse.