Was just about to type up something similar.
Believe it or not, characters in a law enforcement faction have gone through a lot more than you have in your illegal faction. I've never even been in an LE faction but I can understand how frustrating it would be to have your character permanently erased and then have to be put through the same application process you've already spent so much time on before. Meanwhile, it may be hard to get into an illegal faction, but it's nowhere near what you have to do for the PD/FD. Having the same standards would just make it so tiring for LE officers, demotivating them, maybe enough to where they just decide not to do it anymore. Then we don't have a populated LE faction. Where does that get us?
I think the system should just stay where it's at.