This seems to be a number of small issues that are caught up in one large over-whelming debate.
1) Piracy - Screeners have been handed out for years and have never proven to be a large problem. Sure copies circulated, but not to the extent that it is suggested they are now. It seems that the MPAA, much like RIAA, is having difficulty managing and adapting to the proliferation of the digital world, and is handling it with a similar solution: if one cuts one's finger the only course of action is to amputate the arm.
2) Oscar Contenders - Let's be fair: studios will prop up anything if they think they can get away with it. Not everything they think deserves to win should be given the time of day. When print ads for some P.O.S. comedy that lasted one weekend are run with a "For your consideration.." for Art Direction, how can the voters, let alone anyone else, take them seriously? Do they really expect the voters to actually subject themselves to the tripe as well as the sirloin?
3) Volume - There are far too many films released in one year. Even Roger Ebert, who is paid to see them, can't see all of them, though he comes closer than most. It's almost unrealistic to expect that every voter will watch every movie released, let alone screeners that are sent to them. Would the voter's personal tastes not make this a selective process: if one doesn't care for foreign films, why would one watch foreign screeners?
4) Reality - So if the voters are going to be selective about the films they watch anyway, why not make them see them the way most others do: in a theatre with everyone else, or on home video from their local rental shop? While sending screeners out to everyone seems to make the most sense, there was never any guarantee they would be watched in the first place, so why should the studios pay to have someone watch the movies they just paid to make, market and distribute? While there are certain films released that audiences should be paid to be subjected to, if the studio feels it's worthy of an Oscar, the voters should be seeing it on their own.
5) Jack Valenti - You have to make a choice, Jack. Option A - you retire and leave town quietly with your tail between your legs and allow the industry to mature the way most things do over time. After all, it's not the 1930's anymore. Or Option B - you die and allow the industry to mature the way most things do over time. After all, it's not the 1930's anymore.
So how do the studios solve these issues? Simple: First, if you want to keep handing out the screeners, then copyright the stupid things so they cannot be duplicated. Second, if you don't want to hand out screeners then pay for private screenings in regular movie theatres that every voter is given an invitation and map to get to. They will be given a choice: show up to the screening and sign in for verification, or forfeit your vote for that particular category. Last, be realistic about your films chances and trim down the number you want the voters to watch in each category. You stand a better chance of all of them being seen.