That part is actually by design. The thought being that if you lose it that it will be more likely to be naturally destroyed than have the time to be found by someone with nefarious aims.

The 10 max rule (which allows for exceptions) was from 2004 when presumably they assumed most people did not have reason to be walking around with theirs all the time. I don’t know why it was put in place, other than a cursory search seeming to be antiterrorism bs, but 10 is kinda a lot for a document you generally don’t need to carry with you and don’t need very often in general. Probably super difficult for people that struggle with housing though.