Lasiothorus,
I'm sorry but I can't understand your way of thinking regarding this. CASA probabably didn't want to become an issuing authority for ASICs any more than I or the other airport operators around the country did. We had it shoved down our throats. I can tell you without fear of contradiction that most of the delays in getting ASICs processed and back to applicants are well and truly out of the issuing bodies hands.
To suggest anyone could or should have said "no - this is a waste of time and we will not permit it". is in dire need of a reality check.
Yes you can hold onto your expired ASIC or pursue any other childish games you may like but remember that should your name be flagged on the AUSCHECK system for ANY reason, and that includes non-compliance with ASIC legislation, you might find your current card being cancelled and return demanded. Then having to go through a lot of pus and pain to get it back all because of mis-directed anger.