I couldn't possibly agree more in general, though of course I'd quibble with many of the specifics...
As to stodginess, I'd say there's a big difference between personal/small commercial lines and the big ticket enterprise-type stuff -- the underwriting process goes from something data-driven to something relationship-driven very quickly indeed. The bigger the commercial line, the more likely it's all about who throws the best yacht parties (reinsurance in particular suffers from this massively).
Crowdsourced insurance is indeed a terrible idea, though you could imagine 'web of trust' insurance that almost made sense -- say my ten thousand best friends and I know that we're all great actuarial risks, perhaps because we have some kind of information on which it's illegal to select (that we're all in the same gym, say). We could then try to write ourselves health insurance for cheap, because our plan would select only us gym members. You can sort of make it work, as long as you're prepared to make the regulators hate you.
Which is the real problem, of course -- most people buy insurance because they have to, not because they want to. Auto insurance that wouldn't pass muster with the police, or home insurance that wouldn't satisfy the bank holding your mortgage, doesn't solve the problem.
Do good problems exist? Sure. A web-based Managing General Agency, for instance, could do very well for itself, but the expressed ideas in this section are pretty terrible.