Agreed. Not all guard systems go unused, and I can think of at least five of them where strong RP exists, contrary to the ages-old non-official declaration that they 'don't exist'.
Furthermore, they were meant to be rewards for the RP strength required to get official faction up and running. We all paid dearly for them in terms of development and outright credit costs - I think that eliminating them is taking shine off of the diamond rather than adding it.
Also, I kinda like the too-huge systems like Newcastle. It's a great spot to get lost in if you have hounds on your tail.
Not sure that shrinking the universe is a good plan.
I agree however on Gallia, but I AM willing to throw away Igiss' work on it. Or at least revert it to .85 dimensions.
The idea sounded good on paper, but in practice, meh.