Can we have a system which recognizes that every thing is ok with the plane and still it is too close to terrain and automatically pulls up and maintains safe level flight?
present the A/C does not provide any form of protection when it comes to terrain, it merely provide warnings".
This seems outrageous. When the dust has settled, something needs to be done about it.
Why? That's why you have pilots?
Yes - when we have a pilotless aircraft, then things like EGPWS will have built in reactions. Until then they provide warnings, and the pilots take appropriate actions.
Please note, our Operations Manual permits us to ignore (E)GPWS warnings under certain circumstances. The technology maturity is not yet at a point where it can be relied on...