Really your position on mages depends on whether you believe the following statement is unchangeable in lore:
'Every mage, necessarily, at any given moment, is dangerously close to becoming an abomination.'
It is worth noting that ancient elven society was highly magical - in fact, it's suggested every elf was once a mage in the same way every elf was once immortal. I would imagine that if every mage, necessarily, at any given moment, is dangerously close to becoming an abomination, that society would struggle to function. You could say something similar of Tevinter, actually. If mages are so damn dangerous - and given the Tevinter tradition to play fast & loose with what's safe at most other people's detriment - how is it still standing?
There's a pretty simple answer to that: on top of the dead bodies no one cares about.
'Functioning' doesn't mean 'functions well', at least when 'well' is any sort of standard that would appeal to modern day Westerners. If you're willing to accept lots of casualties, and replace pretty much anyone, then any system with positive population growth can endure any challenge 'well.'
Still, I'm pretty damn annoyed at how little out-of-the-box thinking goes on w/r/t mages. From a mage-restriction point of view, however unethical and unfair the current condition of mages are, however frequent and systematic abuses within the templar order are, even in the worst-case Kirkwall-is-everywhere scenario, that is always trumped by the fact that general public safety must come first. "Be practical", is what's argued. So why haven't other, less expensive, less resource-draining solutions been tried? For instance - magical charms that can detect presence of abominations, or maybe charms/trinkets which activate magical barriers when triggered during emergencies around houses/public buildings, or investment into researching detection methods for figuring when someone might be more susceptible to becoming an abomination, or even research attempts at reversal of the condition? Why aren't abominations treated more like cancer?
Because cancer doesn't jump out of your body without warning and slaughter everyone else in the hospital with superpowers.
Detecting the presence of abominations is already easy, because in the vast majority of cases you just have the follow the trail of bodies. Magical barriers are limited means with no clear claim to 'less expensive, less resource-draining', and are by no means a solution.
Research into when someone is susceptible to becoming an abomination is already at the stage of 'it can happen potentially at any time'- whenever there's a demon ready (which there may or may not be at any given moment, but is possible), and whenever there's a mage who, in distress or duress or just plain stress, is ready to make the deal.
Abomination reversal is possible. It just tends to happen that by the time a demon can be tracked down in the fade, the abomination has already wiped out everyone in the area or been killed itself.
I know - I know - scaremongering amongst an mostly ignorant and probably illiterate population, in a country which doesn't have much of a tradition of academic research outside of certain schools of magic, means this is unlikely. I'm just annoyed we never see any mages attempt to limit risk, of all things. Danger is a fact of life but if risk can be limited to much more reasonable levels (say, abominations are about as common as public shootings) it would be harder for the likes of Meredith to see the necessity to restrain them.
American or European shootings? That would probably give you a sense of public risk tolerance: Andrastian Thedas takes a nearly british view towards gun ownership.
Americans accept shootings on a daily basis. Then again, American public shootings almost never leave double digits dead, while an abomination in a non-Templar area can easily reach tripple digits. Europeans look at American gun violence and think the gun amendment is insane.
I just think the way the mages problem is dealt with in game is just... rubbish, really. Most mages seem to make a habit of running off and doing ill-considered, risky, ridiculous things like join a coven or start up a den of blood mages or blow up public buildings. It's just not realistic. Given how much of an evil demons are made out to be, I struggle to see how so many mages are completely unaffected, undettered, and not even slighty worried by the ruling ideology which is absolutely everywhere (unless circles quietly have their own alternative views on such things - evidence of that would be nice, though). I want to see mages who want to try normal things like learning how to cook or trying to barter but failing to understand the ettiquette or attempting to aspire for something beyond what has defined them so far: magic. I want to see mages who are driven by more than fear and have spent those long years locked up thinking about the politics of their situation and the parameters of debate that are used and whether those are flexible.
I want smart mages. And no, that doesn't mean more libraries.
Your desires are fine, and I won't argue them, but I would argue that it's not realistic. The mage system deliberatly tries to depoliticize mages and keep them separated from the mundane world. People who live in cloisters don't tend to have worldly interests or political interests.