I'd suggest:
Get rid of the rank structure = scouts = lack of credibility
Get rid of the uniform = youth club = lack of respect and credibility
in both cases, you'd lose respect and credibility from cadets, staff, and the parent organisation. ACF and SCC have maintained a adult military rank structure without any great problems - I dont think this really is a problem as such.
Additionally, you're going to struggle to have anything differentiating you from other youth groups, and people just wont be inetested if you aren't credible - maybe for the wrong reasons, but it would happen. Its also not going to solve the hangars on or wasters - you get those in all organisations. It may solve the "Walt" problem...?
Maybe we just need to be told we are not part of the RAF, but ARE part of the ATC? I'm with mgdaviso here though, we need to sort recruitment and training (and maintaining standards) rather than change the structure as a whole!