He followed their standard practice. Now, it may be the peer-review process as a whole is a little sloppy.
He may have followed THEIR standard practice. I can assure you he did not follow standard practice for most peer reviewed journals if he as the main editor hand-picked the reviewers. That is not how it is usually done. There is usually an editorial review board made up of a cross section of scientists in the various sub disciplines At most journals the main editor would hand off the paper to an editor in the appropriate subdiscipline, who would then send the ms out to a randomly selected group of scientists within the sub discipline. I too would doubt that three out of four randomly selected evolutionary biologists would approve an ID paper for publication.
It is not the peer review process as a whole which is sloppy - it is this particular journal with this particular editor. Has he stepped down as editor? If not he should.