I will respectfully disagree with you and here is why. Suppose a parent is wrongly accused of abusing their child. Perhaps the allegation is made by a disgruntled neighbor or even a spouse during a nasty divorce. These allegations can be made annonymously so you don't even need to leave your name. As a result of that allegation you will be removed from the home until an investigation has been completed. That is obviously patently unfair to the wrongly accused and of course to the child who is now without their parent. The 60 day rule is in place at least in part to ensure that the wrongly accused person's rights are not violated for an open ended tme.
Now, to your concern about this causing allegations to be unfounded. Keep in mind that CYS has no police powers. The police and prosecutors still have every right to pursue criminal charges against the accused if there is sufficient evidence that was gathered after day 60. So using the 1998 Sandusky case as an example, the local DA had years to bring charges against Sandusky (up to whatever point the statute of limitations expired). For all of the talk about DPW whitewahing the case, having the second therapist review the allegations, the fix being in, etc... this SHOULD have had absolutely no impact whatsoever on Gricar and his own investigation.
. If the prosecutors are letting soical workers determine whether criminal charges are brought then they system is even more broken than we think.