Not sure its a nightmare exactly, seems to flow pretty smoothly right now. You are right outlining the precarious position RAA is in regarding CASA.
But history has developed two distinct issues, very much linked, Different rules for Pilots and for Aircraft, you are forced to select a path for both so RPL doesn't really come into it, Cant fly RAA aircraft on an RPL so that needs to be changed as well as other way around.
Then aircraft, easiest way to line them up today, is sort out maintenance differences....LAME for everything, but we certainly done want that. If we were discussing a different regulator they would open up self maintenance for all PVT ops aircraft or something like that.