IFAs and the end of the commission income (See FT.com)

As reported in the FT the FSA are intending on putting an end to commission based compensation for independent financial advisors (IFAs). Instead all IFAs would need to agree a fee with the client and that fee could either be paid upfront or deducted from the investment. It has been hailed as a wonderful step forward for the man on the street seen as adding further protection. However, as someone who uses IFAs I am not quite so sure the benefits of such regulation outweight the downside.
I have had an IFA for a number of years. When I first started out with my current firm remuneration was, at my option, commission based. This meant that I paid nothing for their services and they got nothing from providing services unless I actually bought some form of investment. As a result of their advice I purchased life insurance, critical illness cover and started saving properly into a pension. I would never have done this without the advice of my IFA and I am pretty certain I would never have gone to see an IFA if I would have needed to pay.
However, a couple of years ago my IFA changed the basis of our arrangement so that it no longer received commission. Instead I pay an annual retention fee (£1,200 plus VAT) and then if they place investments for me I pay a lump sum for their advice (they may still be able to get commission if I agree but I cannot remember).
I must say that the service and advice I am getting has improved since this new arrangement was put in place (although this might be more a result of my personal advisor changing and the new advisor simply being a lot better). However, £1,410 is a lot of money to pay just to have someone meet with you 2 or 3 times a year and tell you that you should try and save more, utilise your ISA allowance to the full even when you have no liquid assets and that cutting your pension contributions risks ruining your ability to retire.
True I have received helpful advice. They arranged for my pension investments to be changed; they drafted the letter to HMRC to ensure I was benefitting from tax breaks on my pension contributions. Does this justify the cost?
Very difficult to say and when things are tight is this not just a luxury that I should get rid of? I could have done these things myself but just didn't get round to it - why should I when they were being paid for it!
One thing I can say is that if I was contacted by an IFA for the first time and invited to come for a free chat but warned that if I did want to instruct them I would have to pay I would say, "Thanks but no thanks - I can manage on my own".
Therefore, whilst the Government's move might save some people from the clutches of unscrupulous poor advisors making bad recommendations purely for the commission, it will also likely lead to an increased number of people who do not have adequate protection in place for emergencies or retirement both of which will ultimately mean a bigger tab for the Government to pick up.