Equipment failure is pretty low on list.
Like it or not, more force will definitely raise costs, but it'll also push folks from category one to categories two and three. Or they'll just ignore the regs and begin a normalization of deviance.
[0] https://www.aircraftspruce.com/catalog/eppages/superior08-11...
Yes please. If you can't afford flying around a missle, DON'T.
I understand the logic you're using when you say you're happy that the standards are high. What you don't understand is how many A&Ps pencil whip annuals, or overlook corrosion or other safety issues all the time. They are overworked, and spend their time focused on a lot of box checking things that do not matter much and not enough time focusing on the things that do.
Let me make it clearer. If you used the same standards for your car, you'd have to get it fully reinspected every year and fix everything. A little corrosion on your hubcaps? Replace all of them (at 20x the cost you're used to). A chip in your windshield (replace the entire windshield at 10x the cost). Etc etc.
Source: I am studying for the A&P and I own a Cessna 182. The regs really do need to change for smaller certificated aircraft (such as changing annuals to semi-annuals). Look up Mike Busch and his videos on what reforms should look like.
I just had my plane in for an annual. No significant issues. Took 5 months. My plane was in the shop for 5 months. Remember, this is required ANNUALLY. That's how bad the shortage is right now. It's bad enough that I'm willing to take 6 months off work to go __become__ an A&P so I don't need to deal with them anymore.
There has been a massive increase in student/new pilots in the last 5 or so years. This will demand an increase in light aircraft technicians and engineers, just like any other industry that experiences growth in a sector.