While there is a bit of a shift from offering undergrad to grad entry in Australia, I really do hope that undergrad entry is retained. Grad entry does give you the opportunity to study more and grow as a person. However 7+ years to be without pay is a REALLY long time, and this is particularly so in Medicine where there are some times when you work really hard which makes juggling an outside job, a creative exercise.
This assumes that 1) An extra year of being a student (ie 7 grad vs 6 undergrad) is a significant burden and 2) Most grad entry students live under the same circumstances as undergrad entry students. My anecdotal observations would suggest that grad entry students often DON'T do the whole undergrad "living in poverty" glamour; they will often come to the course from a double income family, or have savings upon which they can draw, or already own their own house, or have professional qualifications that afford them a better than expected income while they study (etc - the list goes on). Certainly, a lot of them grumble about having to endure a
reduction in their income, but fewer of them drop under the poverty line to which many of us became accustomed as undergrad students in our late teens/early twenties.
I actually don't disagree with your sentiments (that undergrad entry should be retained), but I don't think the extra year of study required by the graduate stream is a particularly compelling supportive argument.