The bolt head is not rounding off if you look at it again you will see that it starts round and graduates to the hex head a normal design for stuff that gets dirty so you can line up the wrench without buggering the threads. The thing I noticed and find no explanation for is why the touchhole is so beat up almost like someone took a screwdriver to it. I have about 1000 shots through the plug on my Encore and it looks better than that one.
As far as it being a dumb design you can use a standard ratchet and socket combination to remove the thing so there is no excuse for what we are looking at in the picture.
I don't know how you guys beat up your equipment so. I am still using the origional nipple that came on my Scout in the early 90's.