I think there will always be room for incompetent and unscrupulous practitioners. I daresay there are lawyers who may be as well. The difference is that law societies have been around for a very long time, regulating lawyers who have been held to high standards. That doesn't mean there aren't bad apples, of course.
These are very similar arguments that preceded paralegal regulation in Ontario. Those conversations went on from at least the mid-1980s until regulation was implemented about incompetent and unscrupulous practitioners in 2007. They certainly do exist, and that's a serious problem, a serious concern.
I think regulation is the answer. How that plays out, I'm not sure I have the expertise to speak to the actual compensation fund. It's difficult. I think it's like anything. How do you compensate people after the fact? It's no different from other areas of law in some ways. If someone is seriously injured in an accident, money compensates but it never brings that person back to the person's pre-existing physical or mental or emotional health.