Yes, that's a huge problem. I think in terms of IDPs, that's our number one legal challenge in that department.
I would really hesitate to tinker with the definition of “refugee”, which has stood in good stead for such a long time. I think rather than think about changing those things, we should focus on not reinventing the wheel. Using section 25, exempting people from that requirement in the right circumstances would achieve the same thing without requiring legislative overhaul.
But I do think you're right to identify that; it's a very significant problem for IDPs.