Oh, I see, I already knew this but when I hear about "loopholes" I always think there is some advantage to be had. Obviously in this case there is not, its simply what is necessary to have a "N" reg aircraft if you are not a U.S. citizen. Of course this is available to anyone who wishes it, right?
As far as the control subject goes, nothing will get fixed because, quite simlpy, nothing is broken.