The 1/10000[SUP]th[/SUP] FLC is still relevant today on large power circuits. They would fail if the 1MΩ recommendation was applied to many installations.
Almost all of the UK’s LV distribution system would be a miserable fail but its still working.
There’s also the minor problem of just pressing the button and taking the first reading that is shown. A long cable needs a 30 second test at least, if the needle keeps rising keep your finger on the button. Every cable has a capacitive element, it needs to charge before a stable reading can be taken.
We tested a 1.7KV cable on a regular basis. At first the reports were coming back at around 5MΩ which would be in the words of the OP a tragic fail. A 5 minute test came back with 50GΩ (50,000,000,000Ω). The meter could go up to 10TΩ (10,000,000,000,000Ω).
The rule I set was if the test reached 1GΩ in 1 minute then the test was a pass, to extend the test leads to stress on the cable.
The one value for all doesn’t take different voltages in to account. 1MΩ, doesn’t fit them all.