The problem with you, Leadsled, is that you have no idea what goes on out in the bush here.
Just about a standard answer --- another way of saying "it won't work in Australia".
At the core of the objections are people like you, who are so convinced that what you are doing now is the only answer ---- and the rest of the world (not just US) has got it wrong.
As for reverting to a Flight Service system, forget it, although I don't expect you to believe it, the only reason we had (policy wise) two separate systems was militant unions, if one system was struck, the other would keep domestic aviation going, sort of. That was the political reason we ever had a dual system, not because it was the best answer, aviation wise. Facts can be so inconvenient.
In my early days, it got used that way just once. All ATC in the ASSY FIR was shut down for quite a while. It was quite interesting at the time.
As for the VFR at Ballina example, tell us all again why E with positive separation between all IFR, would have been less safe than G!!!
If the weather was so bad, why was the VFR there at all --- was it really keeping the necessary vertical and lateral distance from cloud.
Or was a non-problem turned in to a perception of a problem because of the penchant for Regional pilots to play mobile ATC from their flight stations.
Tootle pip!!