Sorry mate, I can't agree with your last point.
Clubs surly are held to account with regard what they sign off on.
If "they" "Rort" the system as you suggest, it will only bring heat in them and weed out "bad" clubs.
Can you imagine how a reputable club would respond to offending parties.
They'd boot them out which would renders their club rego useless.
This for mine is a good thing, with regard anything, not just car clubs. It servers to advance and improve things. I believe Darwin called it evolution.
I agree there are those who look for every avenue to abuse any systems, but pointing the finger at club rego does nothing to improve our hobby.
There is nothing wrong with the scheme itself, but more those individuals who chose to misrepresent it, and it's purpose.
No different to the countless who driving fully registered cars that are grossly unroadworthy.
Rob, you're a rubber man no? I'll try to relate to to terms you may best relate too... There are tyres and there are tyres.
Just saying...