Well as long as the cost is fairly applied to new entrants then I don't see that as being problematic per se (as after all, any new entrant will have to deal with the same selectivity). In fact that's practically the point, to ensure that the "fly by night" Bitcoin exchange shops that couldn't survive a theft of 50 Bitcoins without going under don't actually make it into legit business.
Yes, this is unfortunate for those devs out there who could solve the problem of making a good Bitcoin exchange if only the cost-of-entry were cheaper, but that happens in tons of other industries too (and not always due to the government), and it already has an answer.
So those millions are money that could go toward building the infrastructure you describe. Bitcoin companies like Coinbase who have finished their Series A have to spend their runway on licenses instead of developers or infrastructure.
It's a huge problem, whether or not people are willing to admit it.
But thank you for arguing in a rational and non-bullying/non-contemptuous manner.
1. http://payment-systems.quora.com/The-Money-Transmitter-Licen...