I could not agree more with you, E&O is not an option any more- and anyone that gambles without it is just asking for a monetary night mare that will more than likely bring them to a quick end in this business, the same can occur even with E&O, there are so many ways those companies try to get out of the coverage they purport to provide.I have had my run in with them in a fraud case that ended up working out- but it took them 14 months to even acknowledge that they might cover the error even though I submitted the potential claim on their web site the day I was informed- and it took another year to reach some kind of settlement. I would suggest that the abstractors really be careful with the kind of E&O that they have- you are not covered in a lot of cases-!!  Just ask the provider to define a "claims made policy" and what it covers!! 
I am greatly interested in the licensing aspect for the benefits it might provide us with a little more leverage as to who is doing the searches in the states we work in- this seems like it would limit the licensed abstractors to be the ones actually doing the searches, rather than the outsourced  companies that are being used to undermine the traditional US abstractor. This process is almost criminal in the degradation that seems to be occurring in many communities, and being promoted by the very companies that are taking the bigger bite out of every settlement anyway- the title insurance companies. While searching titles in Virginia is very complex and most can never be done without a good knowledge of the respective record rooms-and clerk's office as to all the nuances, the outsourcing problem just won't work here all that well- unless the settlement companies and title insurance companies are willing to write policies and accept the liability on just a credit report, which would obviously never require a licensed abstractor anyway.
I look forward to the responses from the licensed abstractors that are members to SOT and read this thread.