The main purpose of transliteration is usually for easier learning and/or communication between two languages of different alphabets. So, efficiency towards ease of reading is preferred. Since spaces exist between words and particles in the English language for the sake of, the same rules have been applied for transliterations, like the Hepburn Romanization (a style that’s been in use and development for longer than you have been alive).
You see, Japanese is easy in the sense that their alphabet is entirely phonetic and easy to transcribe into English with the exception of a few sounds, unlike Korean or Chinese which both have sounds used in their language that cannot be easily transliterated into English and resulting in awkward spellings and pronunciation by those speaking the latter. Were we talking about either of those two languages, I’d wholehearted agree with you. Official does not necessarily mean correct, especially the (arrogant) missionary and Wade-Giles systems of transcribing Chinese that turned something that sounded like “Guanzhou” into “Canton.” This isn’t Chinese nor Korean though, this is Japanese and so something a Japanese says, can easily be written in English as you know.
Why is talking about Korean important? I answer that by asking a question of my own. Have you ever read a report/essay by a particularly ambitious Japanese grade-schooler or a college freshman studying Japanese? The entire essay is more or less in all hiragana with spots of Kanji making the essay EXTREMELY hard to read because of potential misspellings along with spending time trying to figure out which hiragana are linked together to form each word. Why? Because there are no spaces used in Japanese, so it’s hard to tell whether that to (と) or ha (は) is meant to be a particle or part of another word. With Kanji, spaces are completely unnecessary because most of the hiragana are only used as particles, or particular words for emphasis.
Your suggestion sounded stupid, and your rationale behind your suggestion sounded stupid, so here’s a full length essay in the form of Youtube comments detailing how stupid you sound.