This is a practical and elegant solution. In my opinion, the FDNY has found a perfect balance.
Logistical/Administrative communications flow over the repeater system. On-scene Life/Safety communications are highly reliable simplex and independent of infrastructure, but injected one way into the wide-area system for remote monitoring.
Follow along for my reasoning.
Fire Service responses follow rigid chain of command rules set out in NIMS/ICS. Those rules say that each person has one-and-only-one boss, and that only one person is in charge of any one subordinate or collection of other supervisors. This communications setup follows those rules.
An interior FF has enough to keep track of without hearing communications that don't directly concern him. No matter how big the Incident gets a FF working the wet end of the hose should still only get orders from his on-scene supervisor, and never from a senior Chief sitting at his desk jumping the chain of command. Fire Ground to repeater injected one-way means that someone not aware of the big picture can’t tell a FF holding a hose to direct his stream onto another attack team.
Incident communications fall into two different categories: Logistical/Administrative and Life/Safety. The technical needs of the two categories are totally different and is not one-size-fits-all.
Trunking or repeater systems are ideal for wide area Logistical/Administrative. For example, if the Incident Commander calls dispatch and requests an additional alarm, or calls an en-route asset for an ETA or to give arrival instructions, those communications fall under Logistical/Administrative. They are still important, but have the luxury of being repeated thirty seconds later if there is a technical failure.
Life/Safety communications have entirely different technical needs and require their own separate path. Waiting thirty seconds for a clear channel or to repeat an urgent MAYDAY or EVACUATE because you got 'bonked' is not an option. Plain old my-radio-direct-to-your-radio-simplex is ideal for Life/Safety.
An interior crew needs absolute reliable communications with their team, immediate supervision and on-scene safety oversight. Those communications must be instantly bulletproof over a several hundred yard range, but do not need to be sent over the entire city or county to perform their primary function. Inserting layers of complexity (trunking or repeater systems) also inserts dangerous layers of potential failure into what needs to be a very simple system. Relying on complex technology miles away to immediately and reliably send a communication less than 100 yards has substantially contributed to the injury or death of many firefighters.
The legitimate issue is the need for others off-scene to monitor on-scene Life/Safety operational traffic. There are only two reasons for this: situation awareness by regional command and mutual aid, and safety monitoring backup. Being nosy doesn't count. The one-way injection of fire ground Life/Safety traffic into the repeater system fills this need quite nicely.
As much as the followers of this scanning forum would like to hear the play-by-play, that is not the FDNY system's primary function.