mjbow2,
Your post was, I feel, supremely accurate and very noteworthy except on a couple of points.
Firstly, much of the government funding that you allude to in the States actually comes from a trust system, with enormous financial backing that has been built not just over years but generations. Thus, whilst I agree wholeheartedly with your sentiments, there is no quick fix solution for Oz there. In fact, given that successive governments have shown no intention of stepping back from their selling-off frenzy to make their own books look good, I seriously doubt there will be the 180 degree change in policy to start putting the money back. More's the pity.
Secondly, as per the Manual of Air Traffic Services and pointed out by 4-7-11, there is NO DISTINCTION MADE BETWEEN VFR AND IFR AIRCRAFT WHEN ISSUING CLEARANCES, so VFR and IFR are already catered to alike (barring the irreparable damage that Dick has done to GA for over a decade by trying to "help them").