A less onerous system would be better for all but when RA Aus were allowed to increase their maximum weight and compete directly with the GA schools at capital city airports it shrunk the already shrinking pie, so your "grow the pie" idea is not applicable here. All that has happened is that the industry has been devalued.
Thanks for your patronage, I'm glad I now know what I need to understand and what I have to remember. What is this, a year ten economics assignment?
Perhaps if you own a house and then someone comes along and says "anyone can build a house and no approvals required, just do what you want" what would happen to the values of the houses that were build with all the onerous building and council regulations? Don't you think the people who have worked all their lives to pay off a mortgage would be a little but peeved? That doesn't make them bad or greedy people.