No RP with smugglers *is* bad. RP with a rookie pilot who doesn't know about the restrictions, is millions away from being able to afford a license, much less the fines involved, and finding himself fined more than the license, cargo destroyed, and possibly his ship too....that is much much worse.
I do see your other points, and they are valid, so the next thing would be to get the various governments to make their individual licensing costs to a reasonable rate, and allow the police/military to add the codes in game if they do not wish to join the forums.