Indeed. Perhaps it would be difficult to replicate what Uber did in SF and other US cities without breaking regulations - but in London, their model is perfectly replicable, as evidenced by the fact that they were originally given a license by TfL.
But here's an even better model:
1. Do a good job
2. Consumers use your service & rely on you
3. Wait for the government to try to shut you down
4. Consumers will back you
5. Government backs down & lets you do what you want
There's not going to be much public pressure on TfL to reverse this decision. Most Londoners don't use Uber, and there are plenty of alternatives.