GC - I'm not sure I understand your query, I would have thought that the GA part of the overall industry (my meaning) would have been in favour of keeping Flight Service? However I still contend that the services provided by FS still exist only they are more streamlined. For example SARTIMES, NAIPS, Flight Plan submission and traffic information in Class G or OCTA as it was once called.
Captain - I only used that term because I often see it when reading about the US system. Americans like to be free of Government, so they think of Class G and E (VFR) being "government-free" airspace. I thought it worth pointing out, for those who do not realise it, that Airservices is a Federal Government agency, just like CASA and the Defence Force. Now if you fly VFR without a filed flight plan nobody knows who you are or where you are going, just like driving a car or sailing a boat!.