OK here is my tuppence worth.
The problem is it's complicated, both the AD and the ATC want to do the best they can, do you really think they don't want the best for motorsport here, of course they do. However nothing is ever as simple as it seems to the end user, or would be competitors in this case. This is not Europe, the USA or Aus/NZ, where people accept Autosport is dangerous and when you step in the ring, you accept some risk and take some responsibility for your own safety.
Many of the decisions are forced on them by a very active BLAME culture, that if something go's wrong (and it has tragically) then someone has to be to BLAME. So the regulatory bodies and motorsport organisations end up having to over regulate everything to the extremis, to the point that we require the highest possible International safety standards to go club racing.
I would argue that they would like to be a lot more practical, but the high standards are not only forced on them, but they also have to cover their collective a*ses, otherwise they will be blamed and even potentially shut down, especially if the next big incident happens to the wrong nationality.
While I can come up with all kinds of suggestions, the reality is there is no simple solutions to complex problems. That does not mean we should not try and engage the various bodies to try and negotiate a way of getting bigger grids, more stability and lower costs. But we have to understand they the AD and ATC have their hands tied as well, often by people who have no understanding of motorsport.