Regardless of anyone's personal opinion about "the way it oughta be," the law says what it says. I'm not so sure that it's as ambiguous as we think it is. I think there's confusion about it because, well, maybe we haven't read the FARs so very thoroughly.
Here's an interesting article:
http://www.zenithair.com/kit-data/ra/rules.html
And here's an excerpt:
----------------
If you decide to allow someone else to build your airplane to be certificated as amateur-built, you will be required to license it under the experimental category for the purpose of exhibition. This category is much more restrictive than amateur-built. The purpose of this category is to allow the holder to exhibit their airplane at air shows, motion pictures, television filming, etc., and of course to fly to and from these productions. I will not spend time discussing this category since it is rarely used.
---------------
There's always going to be scofflaws who do whatever's necessary to skirt the regs, and it's unfortunate that pilots are no more angelic than the population at large. It will be interesting to see what the fellow in my home state says about his little operation.