The problem is that this would not change for an entity like CFC. They would just use bot-like chars on gates (please don’t tell me about the EULA, it’s worthless in that regard) to monitor gate travel and report hostiles passing through. They would see you but you would not see them. However, only the most organized groups with the biggest and most RL-bored IT departments could setup such a tool for their members. Everyone else would not have access to such a very powerful tool to monitor gate activation and in return it would favor the biggest groups massively over smaller groups and create a very uneven playing field.
Why should it not, though? If you keep your eye on local, monitor your probe window for signatures, keep an eye on the intel channel, maybe even have a scout in the system next door if you are a renter-like being. With all this effort, why should you not survive and live fairly unmolested? After all, you pay attention to the game.
In my opinion, the problem is not so much local chat itself that provides safety. It is the lack of people in Null sec, the lack of roaming around groups, the lack of more variety in group sizes and group types living in Null sec. With more people living as none-blues in Null sec, you would have a lot shorter downtimes of people coming into your system and a lot higher chances to grab someone off-guard. Removing local, however, does not help with this.
The massive amounts of ISK generated in Null sec happens by solo activities and spread over lots of systems. If you look at this faucet breakdown, you notice that 12T ISK is generated in W-space, but 55T in Null sec. A lot more people live in Null sec, however, than in W-space, which means the per-capita income in W-space is a lot higher than in Null sec. In W-space, you can grind 2B ISK in an hour of dread ratting (obviously only high class, but still) and you only require 1 system for your entire alliance to sustain such an income. Your guys can also rat with you in fleets to protect themselves against would-be attackers, but you barely lose any income from the fleet. And you only have to monitor 1 system for hostiles as opposed to lots of systems and variable entry points in Null sec. (gates, cyno, covert cyno, wormholes in Null sec where W-space only has a tiny number of wormholes leading into your crabbing system).
Furthermore , in Null sec, a Sanctum as the best anomaly is only 30-40M ISK. Bringing a fleet there for protection ruins your income because the more people you bring, the more the bounty is split and you can only finish them so quickly.
Therefore, if you want Null sec to become more like W-space, you have to factor this in and make Null sec in general more like W-space: Stronger income in less space to condense groups more and open up more space for more groups. I am not categorically against removal or limitation of local, but on it’s own it is in my opinion not a good idea. It ought to be part of a general, profound rework of Null sec to create the necessary environment to work out well.