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SAE Driving Automation Levels Terminology

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That's because you are interpreting machines as "better." Someone who thinks humans are "better" would have the opposite hierarchy. There's also the bias that technology that does not yet exist yet is "better".
But they are levels of "Driving Automation Systems for On-Road Motor Vehicles" after all. Doesn't it make sense that, in terms of a hierarchy, more "driving automation" would be higher than less driving automation?
 
But they are levels of "Driving Automation Systems for On-Road Motor Vehicles" after all. Doesn't it make sense that, in terms of a hierarchy, more "driving automation" would be higher than less driving automation?
Of course, higher numbers have more automation. That doesn't mean that a system with higher automation is "better" though. It's a "Taxonomy and Definitions for Terms" not some sort of performance specification.