Isn't that an argument for a stronger patent system, not no patent system at all?
A stronger system may not be possible (or realistically plausible). The main problems with the USPTO seem to be:
1). USPTO can't read or won't bother actually reading patents to see whether or not they are viable. You can patent just about anything (believe me, even I did once as a provisional, and the patent was complete bs. Others have done worse).
2). See #1 with respect to prior art
3). See #1 with respect to redundant patents (competing or otherwise)
As things stand, you can have situations such as the one I laid out where a patent offered no actual protection to the inventor, or the situation as in the OP where the UoW seems to have bilked Apple out of $200+ million with a questionable patent that may have prior art dating back decades. It doesn't really seem like they could make the patent system any stronger without significantly worsening problems such as the latter.
Would your engineer have been better off with no patent, where he would have zero ability to defend his intellectual property?
It wouldn't have made much difference. It was some time ago when all this happened, so the fees to file a patent were probably much lower than they are now, but someone experiencing the same today could be paying out $10k+ in filing and legal fees for the distinct honor of acquiring a patent that is effectively useless. A big player who knows how to spin their own reverse-engineered job as being "10% differentiated" (or whatever is the standard now) from anything else covered by a patent can slide right around such things, at least when small fries are involved.
Yeah, trying to sell/license such an invention in, say, '90s/early aughts China wouldn't be any better. There, a state-backed industry group would just steal the thing straight off and laugh at patents.
It pays to be realistic, though. When it comes to patents and patent law, money talks and bs walks.
I know there are flaws in the patent system. I know there are plenty of flaws in the legal system generally. However, I believe that conceptually the system makes sense and is overall, while not perfect, a net good to society.
There may be some independent inventors out there that have found ways to make it work for them. Most of the folks I know in the startup community generally give patent defense a $1 million+ price tag (and that number comes from about 7 years ago . . . it might have gone up by now), and will strongly encourage people to find other ways to defend their trade secrets if they can't gain access to a defense fund of some kind.
It works okay-ish for corporations, wealthy independents, and institutions with non-monetary advantages (such as the UoW that gains the advantage of being a government-run institution).