while it may seem a pain that you need a permit to prospect etc, it does have the benefit that areas are controlled to a degree so that someone is reasponsible for the rehabilitation after mining is completed. Driving up the Arrow I can see the workings within the fossicking area where there is no responsible party for the cleanup and rehabilitation, and people have been digging under the road, into the banks etc. I own a claim and as a condition of the process, I have to remain within the wetted bed of the river and cannot undermine any roading etc, as much as I would like to, I can see the benefits of remaining within the wetted bed of the river, as it keeps the mining operations from appearing messy, and hence stops flack from the general public.
While get a mining license does cost money, it does give some robustness to the process so that the environment is considered as part of the activity, and hence the activity has some checks and balances to ensure that best environmental practice is adhered to by the miners where possible. Without these controls we would soon have indiscriminate erosion taking place as people pursued there 'hobby', much like the trail bikers did to the hillsides in pursuit of there hobby. Like it or not, but conservation is part of the heritage of this country, and activities need to respect this underlying philosophy as best they can, and hence the need for a licence system.
Perhaps the answer is that only so much can be claimed for the level of the given operation applying, which may free up more areas for other people claim. For my part, I may be considering a rent or tribute system this year, but havnt fully thought this thru yet, probably only allow a max of 2 or 3 other operations on the license or something like that.