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Have you ever thought, "If my model was saved by the cover of another model, wouldn't the model that gave me the save get hit?" I know I have.
So, why don't they do it so if someone wants a cover save form intervening models and passes, say 5, the unit that gave him the save would take 5 hits?

Probably for the same reason you can't shoot into close combat. It also means that tactically, one could opt for shooting two different targets killing the priority whilst having more of the shots hitting others. It would also make many a thing more complicated and individuals would argue whether they are in the way or not. Also it would cause problems with people with better saves than individuals behind it. For example, I have 20 guardsman in front of my 10 marines. The 10 marines use their 3+ armor save. Do the 5+ still hit my guardsman or not? If not, why is it that if my guardsman were behind SM it works but not the other way around? Also abstraction implies perhaps they are aiming shots but feel they just can't do it.