As a person who is in the generation which is part of the problem here I don't think the problem is really related to alcohol, or the conditions of sale, licencing laws, etc. This course of action, or something similar is the best course of action available to try and end the problem however.
It appears to be a societal and generational issue from my point of view. I think it's heavily associated with this current UFC (and all other associations of this in popular culture) culture, though to blame it on that doesn't really consider key element; is society degenerating because of UFC's popularity, or is UFC merely popular due to the degeneration of society and they are just catering to the demand.
Between this and the change in entertainment towards crime related programming/films there seems to be a real tough guy, anti-social, anti-establishment element to society. Or at least a greater one. There has always been violent films, but even look at the shift, from the 1980's, where the protagonist was always the good guy (Stallone, Norris, Willis, Schwarzenegger) to the current glorifying of gang and outlaw culture (Sons of Anarchy, The Departed, etc.). Once again, is this just meeting what society craves, or is society being influenced by this?
I guess my point is, that 20, 30, 40 and 50 years ago, people didn't seem to take delight in sports and films that featured people mercilessly beating on defenceless opponents (e.g in UFC when you knock a guy to the ground dazed, and mount then pummel him while he is unable to defend himself) nearly as much as they do now. This has bred a culture of cheap shot merchants who seem to walk around with a chip on the shoulder of their tap out T-Shirt with a point to prove about how tough they are who look up to fighters and TV/Film characters who are happy to knock a bloke to the ground and then stop/beat the shit out of him while he's defenceless. Fuck, Chopper Read is remember by half the population as a national hero for fucks sake.
Changing the fucked up mental state of most of the population in my generation is a bit beyond Barry O'Farrell or any other politician, so I guess they have to do the best they can to ensure that somebody wanting to go out without getting into any trouble can do that. Whilst undesirable, this seems to be it. It may not be a perfect solution but it's got to do a better job than doing nothing will.