While I sympathize with your loss, I have to disagree that the SMS system is not the way forward. The company I work for is currently in the middle of completing our Phase IV requirements - which requires us to have our Quality Control meet certain standards. To note, we operate 702, 703, 704 and 705.
Transport Canada has been nothing but fair in its observances of our company, both good and bad. Those points that have been declared as "unsatisfactory" have been focused on by our company on a daily basis and I am very proud to say that our management is very clear on its requirements to report those occurances which come up. We also work very closely with Transport Canada to ensure we are meeting or exceeding their standards.
I will agree that there are always companies that cut corners to keep costs down. In my opinion they do not deserve to hold an AOC; However it is still up to the PIC to accept responsibility for their actions. If they feel unsafe, then the Non-Punitive sections of SMS allow them to refuse the flight - without the feeling that they will loose their jobs.
Granted, there will still be companies who do not follow the Non-Punitive areas. It is then the responsibility of the individual to decide if their career (and life) is worth the flight. It may seem so at the time, especially with the looming industry downfall due to gas prices. However, I would rather go back to selling TV's then to take a flight below minima in an aircraft I did not trust - an even if I did, my operator would not allow it.
Sometimes it is too easy to blame the system. Our industry is the most heavily regulated industry out there, and one cannot make a mistake without it being reported (i.e. CADORS). I get to read those gems every morning and it is amazing what gets thrown in.
Obviously we cannot expect Transport or the TSB to investigate every incident - an accident however is a different matter - But that is the idea behind SMS. To have the individual operators handle the investigation of behind each incident. Transport and the TSB will still be responsible for investigating major incidents and accidents and if one reads the CADORs, one can see they still do. It is in their best interests to do their Trend Analysis and Risk Management excercises. In the long run it will keep costs down.
Thats all just my opinion from someone who deals with the SMS system on a daily basis...