If you switched to 'people get paid what they bid' it's almost certain the market would just converge back to this anyway - but with a lot more gaming and guesswork (wind guessing the gas marginal price to try and get the highest price).
In a world where renewables are cheaper the transparency speeds the transition
I'm open to the idea that oil and gas are protected and subsidized in many different ways.
Accurate information on how much more they costs than renewables I don't see the link.
Accurate prices are good. Actions that stop the market acting on the accurate prices are bad.
The idea behind the regulation is that it's providing the maximum incentive to bring cheaper electricity to market.
If you try to mandate that high cost producers charge less, they will do what makes sense to control costs and then quit altogether once they are losing money.
Like you are not going to agree a eg 3 year supply deal with $SUPPLYCO at a significantly lower price than what you could get on the spot market for it (or what you could hedge out on futures).