The problem isn't with the current requirements, it's with the screening procedures. Changing the regulations won't solve that. Plus, even on this forum people complain about retirees who use agents but the agents arent cheap. Even for the cheapest at 12,500, that comes out to more than $350 and the price can run all the way up to 20,000 or even 30,000, depending on various factors. So it's not like you're getting a great deal.
A smarter thing to do would be to normalize that process. Just charge 15,000 for example for an extension. That would enhance immigration revenues, obviate the need to have 800,000 sitting in the bank doing nothing, and get rid of all this gray area stuff.
The objective should be to simplify the process and take away the discretion immigration officers currently have.