Oscar:
Watershed moment it is, I also see it as, Do or Die for Recreational Aviation as it exists today.
In the real world of aviation, the pilots are hobbled by their reliance on their employer, and it's not in the interests of airlines and commercial operators to go out of their way to upset the safety administrator.
On the other hand, the Recreational & Sport flyers are not too backward in coming forward and are made up of consortium of everyone from butchers to lawyers and retirees with too much time on their hands.
So now that push has turned to shove, What's next ?
A) Cut the rabble loose, and make it 100% self regulating, and protect itself from future litigation by lifting the bans, and sit back and say "I Told you so". and continue their rein over the industry.
or
B) Bring out a bigger stick, and beat it into submission by firstly closing down the major local supplier of economical engines/aircraft, as the $Au dollar is going South and that will automatically limit imports from over seas. But option B is slower and brings in a lot of flack.