I completely agree with your sentiments Tom. I cannot see the point of this licence: if it was based upon experience of road circuits then it might, just might make some sense, but any qualification that just needs someone to take part in a short-circuit race has no relevance.
In "our day" entry into the MGP was not easy - based upon a record of how many races you had done, at a National level. Then of course the TT, for which a full international licence was required, earned through points gathered from club and National races. I like so many ended up with a full grand prix licence, making me eligible to race anywhere in anything (!), and as far as I am aware, there was no need to keep qualifying for this - rather like a road driving licence, once you had proved you could do it, there was no need to keep proving it over and over again.
certainly the last time I came over to the TT, there were many competitors who looked like they had not even got a provisional licence for the roads they were obviously so incompetent. Nowadays it does look as if the standard of rider is much better, and this has much more to do with the good marketing and improvements that have been going on, and NOTHING to do with mickey mouse licenses.
If I were younger and fitter, would this mean that all the replicas that I have been fortunate to earn would count for nothing, and I would have to take part in some inappropriate club races - the most dangerous because of the varying standard of rider - before being permitted to enter?
Evidence of past competence, plus a medical should be enough.