No one has the right answer! Everyone's proposals to fix the NIH funding situation boils down to give money to folks like "me" and fuck everyone else. So I have to agree with Odyssey's premise, maybe the current system is as good as we get. Maybe, the current system just cannot function properly when it is heavily taxed by an expanded investigator pool and a not enough resources to support them.
A shift to a HHMI style process is quite ludicrous as HHMI could never exist in a vacuum without the NIH and as Drugmonkey posits, the scalability of this is laughable at best. And once again you create a very insular version of science that looks more like a circlejerk amongst friends that limits the playing field even farther.
Is the answer that there is no answer and that we but here to play the game, trying to adapt and survive each day, while trying to make incremental beneficial changes to the system? Fuck it I don't know, but I know its not Germain's plan. To me there is a macabre but reassuring thought that all of us, the good, the bad, the riff raff, and (to some extent) the BSDs are all being crushed under the same terrible wheel. It could be that is the justice of the system, when the times are tough, to some extent we all bleed together.