This is how a lot of filmmakers are feeling at the moment in the local industry. I myself have slightly differing views but I guess they fall into the same basket. Personally I don't factor in Government Funding at all in my work, I came to the conclusion many years ago that I wouldn't even get the envelope open let alone an actual look into my application. The arguments are becoming pretty circular though and tiered off by filmmakers who favour differing stylistic approaches. When you watch a documentary like Not Quite Hollywood, you see that with the interviews.
Fact is that even if you make your first feature, unless you are Auteur material then you can pretty much expect to either go back to your day job or pick up some work as a 1st AD on an ABC afternoon kids Speculative Fiction series. Even Auteurs though in this country struggle with funding.
I think though, one principle of this film does disagree with my temperament, it is a minor point and only subjective from my own perspective. I don't see filmmaking as needing to make money nor give people what they want to see. I think that attitude is potentially dangerous and possibly at risk of dumbing down society even more so then the rubbish they consume already. For instance, A Current Affair makes money and is indeed what the mass of the public want to see, yet I lament that it is all over our television screens.