The liability issues are adressed as currently. The issuance of a renewed medical should be solely at the discretion of your DAME in 99% of cases...he tests you, passes you fit (or not) and hits 'print' on his computer and it spits out new medical and sends notification to CASA...CASA database updated automagically and you go on your merry way $130 better off. For renewal of ATPL/CPL the exact same procedure but you provide your employer with copy of renewed medical for their files.
It should be so bloody easy
An 'Air Taxi' classification is also an excellent idea. No AOC but with 6 or 12 mthly 'operational audits' that could be carried out by delegated ATOs as part of an increased licence/proficiency check protocol carried out on CPs of air taxi operations...initially 6 mthly and then with proven track record increased to annually and even over time it could be bi annually for really good operators.
It could be a very simple process...it's not like AOCs actually stop anyone breaking rules if they are that way inclined.