Yeah, I agree with you on this. An overhaul and sensible rules, including a reasonable salary level rather than 100% dividend income, but allow contractors to be employed by their own company.
Too many chancers intent on lining their pockets instead of paying a fair amount of tax to scrap it completely. I do think that most IT contractors would accept reasonable treatment by HMRC that leaves them a sensible balance between risk and the financial rewards it provides.
I'm also struggling to see this is a major election issue. Nobody earning a six figure salary is going to vote Labour just for this, and I can't see it switching people between the Lib Dems or Conservatives either; they'll be more interested in EU membership, the party leaders and broader policies.