As Dennis points out, these VIs were initially created with the Import CVI Instrument Driver utility. This utility programmatically scripts the building of VIs from inside LabVIEW's C code (which is not an easy thing to do). We script the VIs the way you describe to make the scripting easier and more robust.
In particular, it's easier to script things if they're all in the same diagram, rather than have to programmatically wire things together that are split among both case frames as well as outside the case structure.
The code could have been prettier, but since there's essentially no performance impact, we didn't bother.
I hope this helps explain it.
Brian