There's literally nothing you can say to argue against this. The ATF has openly admitted on multiple occasions that it does not have near the ability, funds, or authority to enforce all of the firearm regulations currently on the books, and this is clearly evident from the massive problem that America has with illegal gun ownership and gun crimes. That being said, why would anyone think that passing additional laws to keep up with would help the case at all?
Under Dubya, the BATFE had its teeth removed. Such absurd restrictions placed under GWB's rule include not being allowed to use computers for trace work and not being allowed to do more than one spot inspection on a gun dealer. There has not been a permanent BATFE director in 8 years. Michael Bouchard, the former assistant director, said, "You need somebody there who has ownership and is going to be there for the long haul and can start projecting a couple years out, versus people who are just brought in for a temporary fix."
Alcohol and tobacco should be put back under the dept. Of agriculture. Explosives should be returned to the FBI. That leaves only firearms, and I think another agency could and should handle firearms. The U S Marshals could handle this quite nicely. So could two or three other agencies. BATFE should be completely defunded, disbanded and done away with. They have abused their power since the day they where created.