I love taxes. I love roads, and bridges, and police, and fire depts, and state parks, and all the thousands of other things that taxes pay for. I don't really feel like charities should be tax free. I don't think charging admission to drink homebrew at a public event should be legal, regardless of who profits from it.
I don't think it's fair to demonize the distributors. I'm not convinced it's actually any specific distributor that complained about this. Even if it was, distributors pay taxes, and have families to feed, and so on. I don't begrudge them for wanting to stay in business. Most brewers don't have time to drive around to deliver the beer they make, so either they can hire an employee to do that (expensive) or hire a distributor (slightly less expensive).
Until American decides alcohol shouldn't be a controlled substance, I don't see a way to get around these regulations in any fair and cogent way.