The situation does seem to boil down to "people with connections have better connections", which does royally suck when you are starting out. In film, in music, in literature, etc. But that doesn't mean it's not an interesting story. Maybe if it was focused less on the specific crappy things the organization does, and more on the frustrations and experiences of a small filmmaker.
Make a film. Try to go this route with funding, and document everything. Record your experiences and every one of a thousand roadbumps you meet on the way. Investigate how the government film funding works, but relate it to something else you are doing. I think that would make it a more interesting story and something a lot of people can relate to. Spending $500 to attend a festival to meet people might seem like a lot, but $500 to try to get funding for project A while gaining material for project B might seem like a better investment. And I'm sure you'll find a lot more people willing to talk to you/be filmed by you if you say that you are documenting your experiences, rather than investigating why they don't give you money!
Make a film. Try to go this route with funding, and document everything. Record your experiences and every one of a thousand roadbumps you meet on the way. Investigate how the government film funding works, but relate it to something else you are doing. I think that would make it a more interesting story and something a lot of people can relate to. Spending $500 to attend a festival to meet people might seem like a lot, but $500 to try to get funding for project A while gaining material for project B might seem like a better investment. And I'm sure you'll find a lot more people willing to talk to you/be filmed by you if you say that you are documenting your experiences, rather than investigating why they don't give you money!
. You don't understand how familiar I am with these sites. It seemed so promising in the beginning too, when I first started researching. As you go through the process though, you realize that these people don't really want to help you. I'd tell you more stories, but I don't know how to make them exciting without writing an essay.