For those who have a problem with how to pay for the bureaucracy - let the insurance companies pay for it. I'm sure they have actuarial studies done to the Nth degree for every roadway in the U.S. with statistics broken down based on ages, fault, road conditions at time of accidents, etc. It's not as though they don't have an interest in the matter. We're already paying for some degree of this through our insurance rates, anyway.
Seriously, here in TN (as LindsayDunn said earlier in this thread) any fool can get a license in this state. Proof of minimal insurance is required for licensure. A lot of people on 'minimal' insurance will drop it at their first convenience to "save" themselves money. Uninsured motorist collisions are big bucks in this state (I'm sure it ain't a problem in TN only). Vehicle inspection does not happen in this state, emissions or otherwise. I wish there was vehicle testing. I've seen junked-up cars traveling at the posted speed limit that are potentially way more dangerous than well-maintained, newer models exceeding the speed limit.
Over time, with the insurance industry riding herd over licensure, I think rates overall would drop. That's just my opinion, and we're talking about huge money pockets AND an industry that hasn't got a great track record on being responsible. Anyway, you'd be weeding out the marginal drivers, and with vehicle inspections you'd be weeding out the marginal vehicles as well. With 'better' drivers, I think your instances of road rage incidents and accidents would decrease as well, over time.
Driving IS a privilege - if it were a right why would we need a license to do it? I think we really need to change the impression that driving is a right, in this country.