I agree with all your points, and good to know that other states have stricter controls on the holiday lighting industry once the size of job meets a certain threshold.
And you're very correct about providing the homeowner a reliable service where they can get a reputable contractor - it's a win all the way around (similar to Angie's List concept, but where homeowner is not paying a fee to have access to a reputable contractor).
The intent of CLL is not to sign up every Tom, Dick, and Hairy. We are selective on who we partner with and try to reduce (or prevent altogether) the number of shady contractors from signing up (I've dealt enough with less-than-honest contractors). This makes things smoother for both the homeowner, us, and the reputable contractors who are bonded, insured, and take pride in what they do (it's expensive to handle customer complaint calls!).