Hoosten - E without surveillance can work but like all procedural separation it is very slow and clunky - ALL airspace is safer with surveillance.
Mr Flappy - VFR used to be separated in Australia when we just had CTA and OCTA however a conundrum existed.
For instance, two VFR aircraft approach a control area self separating, they are then split up by ATC, before going back to self separating when they exit the control area. Where is the sense in that? Worse what if they can no longer see each other but ATC washes their hands of them anyway!
For mgahan the Coolangatta mid-air was a classic example of an airspace long overdue for surveillance - we typically waited for four people to die before putting surveillance in there. You will also remember that the RAAF took back approach control at Townsville because the CAA was still living 30 years behind the traffic.
Nothing has changed!
(PS Have you got a link for RFQ 09-342? I cannot find it)