HR is never about employee needs. Their role is to protect the interests of the business, especially with respect to employment law. I would argue that HR failed abysmally in this case, but not because it sucked for the hiring manager or the candidate, but because the business lost out on a talented individual and put the business at risk of a law suit.

It would be odd to not have HR involved in hiring imo. When I was hiring for my team I was happy HR was involved, I gauged technical ability + fit for the team, HR gauged general fit with the company. We'd then have a chat afterwards to compare and see whether we would move forward with the candidate, and honestly the opinions were always along the same lines. It took some of the responsibility off my back knowing that the candidate received the green light from an independent party as well.

I would argue that HR has a very specific role in hiring, namely background checks and verifying that the resume matches reality.