I would not blame the software. I'm pretty sure that images are not generally used as formats for resumes.
I mean, at what point do you think it gets ridiculous? When it's a video instead of an image? When it's in Sanskrit? (Computer translation is a thing, after all.) When it's a video in Sanskrit?
Or maybe is it more reasonable to say, look, this is some text, submit it in a standard text format? And an image is not that, even though OCR is a thing.
I agree that what you said is more reasonable but most jobs are not for technical people. Even somewhat technical graphics designers might go over the top and craft a visually appealing resume and use a picture format.
Why blame anyone for this? Just use OCR where possible. If the application instructions specify a text resume sure. Having a picture resume in a .docx makes little sense but a PDF is both an image and text format. Not to mention a lot of people design their resume or have someone else make it and print it for them and scan it when applying for jobs as an image pdf.
Shit happens. Tech is supposed to make life easier not harder, despite of humans' failures not because humans arr cooperative enough right?
Why bother with OCR as you still find enough people without it. And if you don't get enough applicants that you need automation manual review will happen. So still you don't need OCR.
