Here is a compromise that was posted on another forum that I could possibly agree with.

NICS is made available to anyone for free. All firearm transfers have to be run through NICS or a simple form must be filled out and kept by the seller for a period of one year. The form does not have to be submitted to anyone unless it is requested by the police or DA for an official investigation. After one year it can be destroyed. No penalty for loosing the forms unless more than three are lost in the period of one year.

Machine guns remain an NFA item but new ones can be made and sold to civilians/general public. Suppressors, short barreled rifles, and short barreled shotguns are all removed from the NFA.