It is much cheaper if it is used as it is intended to be. i.e. arriving IFR cancelling IFR in severe blue. The service gets used in full anger when it's needed, in IMC.
Bloggs, they ARE known about. You don't want to acknowledge the example I gave above. Trust the controller, whenever they see the VFR paint and it affects the IFR it MUST be advised to the IFR as traffic.
I have never known any Australian ATC to try find a cop out clause. They do what the airspace mandates, give them E and they will use it appropriately. Give them C and if they're busy they'll knock back the VFR clearance every time.
It appears to me that you've never experienced Class E in its real form, either as a VFR or an IFR?