S_H,
Maybe I'm trying to be too simplistic in my explanation. Yes I believe that a system of independent oversight and assurance could be established. But I'd also taken the the fact that you said "responsibilities of ownership, operation and regulation in the same body" to mean the MOD.
But if you mean that Director Air Systems, with DMSD, CASD and TESD, should be able to fulfil an effective role of independent oversight and assurance, then I'd agree.
Not sure what you mean by questioning my question on military systems. A challenge for the MOD wil be management of systems such as A400M and FSTA.
sw