In my own experience, I can name a few larger operators whom would be very threatened by this occurring, whilst they don't necessarily take the majority of their money from Scenic Flights it keeps them afloat and increased competition from competitors that have entered the market with a much lower operating cost is certainly going to hurt them.
That being said, those same operators also use slightly larger Aircraft, 7 or 12 seaters for example which by their nature when full are exceptional money makers, but this would make it far more difficult for them to fill those aircraft. I think for those to work properly Aircraft need to be considered by Type, not just seats, I'd dare say a good Caravan would be far safer than a clapped out 206 or 182 and this should be about the safety of the Aircraft rather than just how many people dead from a flight CASA are willing to see in the headlines.
Personally I think this has great potential for more operators to get up and running, to increase the number of GA Aircraft in the air and the potential for newcomers to get some experience and start their careers. But perhaps we should be looking at the Aircraft being used, perhaps limiting the Age and Types of Aircraft in an attempt to encourage operators to be using better quality, this would bring up their initial costs due to Aircraft Purchase Price but their overall costs would be lower making it easier and perhaps balance out whilst creating a good safety standard and preventing just anyone would getting in?