I don't think the risk on the FR-8, in .7.62 Cetme, is that it will blow to pieces. (i.e, catastrophic failure). The risk is that it will grow headspace fast using a steady diet of full powered, factory .308 Winchester rounds. Cetme psi was around 42,000 psi. .308 Win saami psi is around 66,000 psi. The numbers don't lie. (And Spanish 98 actions are not regarded as well made to being with.)
And yes, lots and lots of governments do stupid things on a short term basis with respect to military arms, in the face of dollar shortages and military necessity. The conversion of the Spanish 98s to 7.62 was from the beginning intended to be a very short-term solution, until enough automatic weapons in 7.62 could be bought or produced. It was a temporary bridge, not an end game military rifle.
Hope this helps.
Mannyrock