...so the scheme appears to be even more bonkers than many predicted.
You still haven't said an alternative. Its fulfilled it's initial purpose. goody somes up what it's achieved. With out FfiT you would have that competition or fall in price, at least not significant. You idea of just the government paying directly doesn't work.
particularly as prices of panels and inverters are falling significantly. Its a highly competitive market on PV panels now which is good for the buyer. Also bear in mind that energy prices could double by 2020, getting your electricity from photovoltaics could save you a huge amount on energy costs over the years.