Your fixed costs are on the lower end, think of those with higher! You are entirely correct though. Lots of conspiracy theories about killing GA then accessing pilots through 200 hour pilot schemes etc, etc but in the end red tape & user pays is killing GA.
I doubt anybody cares, government certainly doesn't, couldn't care less, it costs them money. I've always had the view that GA is part of every towns infrastructure. It allows RFDS & Angel Flight for example. When those services disappear (it'll take a while) then the whinging may start.
One NSW/VIC border town after years of support for a flying comp is attempting to user pay the event, no consideration of the money it brings into the town. The local aeroclub relies on this event to keep their club viable (they do the catering). Accommodation & pub meals etc.
Another SA town is excited to have the National event & is working with the club on the planning & has officially welcomed the aviators. While the former continues GA aviation is a dead duck.