SASless,
You started off arguing that nobody was paying attenton ("The FAA has never taken a hard look at the EMS business....changes usually come within the industry and are generally driven by insurance costs.")
I know that is not true. A major task force worked about 10 years ago, and the results saved the EMS system. Rather than place blame, why not let your excellent points stand for themselves?
The FAA does not sit by when these things happen. I work with 76 oerators who sweat profusely when the FAA examiner comes by after a minor mishap, let alone a pilot error accident. Don't you recall that?
Let me ask, because I think you are expert in this field (at least by surviving all these years!) What should we do?