Overuse of classification labels is a huge problem. The incentives are skewed as you suggest, so there is no real benefit to spending the time required to make decisions on each and every individual fact or statement. Entire swathes of boring information are classified for no real reason and a large number of things that someone might use as useful data are sequestered in random agencies. The cost of complying with FOIA is not insignificant and over-classification jacks up the cost. I don't know if there is a really effective way to "fix" the situation without somehow changing the incentives.
