these are some interesting points, and a few that I think merit responses:
1) I don't totally understand why it would be harder for someone new to auditioning to record vs. take a live audition. My feeling is that taking live auditions is more of an acquired skill that making a good recording. I understand that there are technological (and cost) demands on recording, but in my experience students/younger players have more access to those things via schools and from their peers. I personally borrowed mics from my friends for years before buying one. Same goes with space - one of the best resources for recording is the school you attend. At any rate, even if you do have to front some money, isn't it better to spend it on a mic (which is an investment) than a plane ticket?
I haven't crunched the numbers, also, but is it really more expensive to review a higher volume of tapes than to conduct a full round of live auditions? I honestly don't know, but it seems the two are at least comparable.
2) I agree that the standard of playing is very high across the board, but I think my point remains that if people are really acing the standard excerpts, why are so few advancing to later rounds? Maybe it's different in the percussion world, but even in the regional orchestra auditions I've taken it's pretty normal to take 10-20% of the first round. In full-time groups, sometimes only one person advances out of the first round, or even none (!!!!). So yes, the standard is high, but the behavior from orchestras is actually that our standard isn't high enough.
3) Sure, there are broader cultural issues surrounding long vacancies and no-hires, but I don't think it's just a lost cause. AFM could adopt hiring best practices with guidelines for filling vacancies. They could have a list of orchestras that are repeat offenders. We could make enough noise about this that something changes.
As to the last point you make: yes, we all agree that it's bad, but why do we assume it's the best possible way? Have we really tried anything different? As far as I can tell, it's been the same **** for decades. Here's a thought - why would we assume in the first place that succeeding in an audition makes you a good orchestra player? The two are completely different skill sets. What if orchestras stopped putting the highest possible premium on perfection and paid more attention to musicality, collaboration, bringing a positive contribution to the ensemble, etc. I'm not saying I know what that would look like, but my only point is that maybe this is part of the reason the orchestras don't like the candidates that they are getting, and that so many orchestras have toxic cultures, and that we (I) are/am endlessly bemoaning the ridiculous, Kafkaesque nature of all of this?