I think that has been discussed elsewhere at some point? I mean the topic of who does special packaging nowadays? You can remember Tesco, OEC, GROSS, MSBR, and many others who were doing even very special handmade items. Not only for sake of being "handmade", but also actually looking good & exceptional.
The choise to go into factory product is most likely direct result of increased pressing and release volume. I wouldn't expect someone to hand assemble some MSBR type for 1300-2600 tapes they just got for sale? Or 5 cd's totalling 5000 copies to hand assemble.
I'm fine with standard packaging. Jewelbox, j-card in tape box, etc.
One could say that Nil By Mouth. Cathartic Process. For example they do alternative packaging nowadays. But is it going to extent of MSBR, GROSS or specialities of early Tesco or insanities of SHF etc?
In case of Hospital, I would assume, that all the design is intentional. If it looks rough and rubbish, it is intended to be so. About dubbing, I can't say anything since I haven't heard any of the tapes since.. well, few years ago. And I do think that as opposite what Cathartic Process said, 2-3 years ago there was period of high-speed 16x on lowest grade tapes where machine was used until it simply fell apart. Some of the worst dubs in noise. And you could tell it by listening the tapes. Few sad lights blinking on one channel with clicks and pops on tape. Hosital did improve it when changed to do 1:1 double decking. But that obviously was only suitable for small runs. Whatever dubbing is now, I can't imagine that it would be worse than 2-3 years ago. I got many tapes what maybe looked nice in the big polycase with full color cover, but sound.. often unbearable. Not the low levels, but glitches and crackles not meant to be there. I do prefer the basic box, instead of oversized vinyl box. It's rare to see design what offers so much visual pleasure that it justifies the unpracticality. In same was as DVD box vs. jewelbox. It simply isn't "special" to choose oversized packaging. Tape in DVD/videobox size "library cover" isn't "special" unless it has some substance why such packaging is used. So personally, I'm all in favor for Hospital doing standard J-card & plastic box.