DW - While I agree with you over the fact that creating new laws and such would be more costly than just paying out, I'd like to point out that if we do go through the process of making laws it may help prevent this exact thing from happening again. I know there will always be some cockbite who will find a loophole, but at the very least let's make it harder for them.
To me, it's like having a house that needs a new roof... you could either just shell out a few hundred bucks and tarp it - making it ugly, and needing to patch holes in the tarp yearly, or spend more and just redo the fucker and not worry for 20 or so years.
Just my thoughts on the topic, feel free to argue as you will (like you need permission)