Seriously, though, I am disturbed that the possibility of a large decrease in talmud Torah doesn’t see to bother you.
It does bother me. Obviously I’m not qualified to decide which way is best, but I will note that the current system creates a huge decrease in Kavod HaTorah & Kavod Shomayim by non-Charaidim. Furthermore, I would not be certain that the Torah learned without subsidies will not be better that that which is learned now. As it says in Perkei Avos:
?? ??? ???? ?? ????: ?? ???? ????, ??? ???? ????, ???? ??? ????, ?????? ??? ???.
It also says:
???? ????? ????: ????? ??? ???, ???? ???–?? ???? ???????; ??? ??????, ?? ???? ????. ??? ???, ???? ???–?? ????. ??? ???, ???? ???–????. ??? ???, ???? ???–???.
P.S. What I’m doing is explaining the non-Charaidi side. As far as what will happen, Rav Shteinman’s approach as I quoted from Rabbi Adlerstein is to be passive. I would like to see a compromise/moderation of some sort (in the end, and I expect to), but only one that would be Al Pi Halacha & be Marbeh Kavod Shomayim.