XM193 (from what I understand) is stuff that is rejected from a Quality standpoint for military purposes. It may be sealant, it may be out of spec in some way (powder charge, overall length, etc.) it may have failed some rigid quality spec that does not make it unsafe to shoot.
Or, it may be that it was put "on hold" at the manufacturer because of a problem with a specific machine that day, etc. In fact, the dings and dents in a certain lot of ammo may be the very reason that it is scrapped for military use, and boxed and sold to civilians.
I work in a food manufacturing facility, and it's the same with us. Sometimes our product may not pass Quality standards due to appearance, slight deviation in recipe, etc. It is still perfectly good to eat, but not up to par for the company standard. Sometimes it is destroyed, some times it is given to employees. I feel that the XM193 is the same scenario, still good, but not quite up to ideal standards.
If this is true, (and if my assumptions are not, then please let me know) then it would stand to reason that it is kind of strange for XM193 to be "The Standard" by which all AR ammo is measured considering it is "defective". But it is the closest thing to legitimate M193 we can have.
The reason for its acceptance are many:
1. Military Use- After all, it is the standard round that was in use by Nato before the SS109 / M855 took over. Anything that is used by the US military is always perceived as the best. People generally assume that the US military will not use "Junk" for very long.
2. Cost - It is relatively inexpensive when compared to other similar rounds.
3. Effectiveness - It works!! Good at stopping bad guys, excellent for military use, good penetration, etc. It fragments reliably and has good wound ballistics.