Sandal, I'll answer your question!
The test is designed to make sure that you're safe and competant enough to fly alone, if you can't pass it then you're not ready! If you are unable to make a controlled, safe and reasonably accurate landing, then you still need someone standing next to you just incase you need help. By this stage you SHOULD be competant and safe enough to fly alone though! The test is there to give you a goal to aim towards and to make sure you're safe to fly alone. It really is quite simple - you can't complete test, you don't pass! You're not expected to make a landing as accurate and controlled as an "expert", just one that's safe. Safety is the priority, if you deem it unsafe to land (or even take-off!) then you can have another go at it. If the examiner agrees that there was a good reason for aborting, then normally you shouldn't get penalised (infact, in some cases you will actually gain points!) I suppose you think that you should be allowed to redo the deadstick aswell? The test is not hard, infact it's easy when you are a safe and competant pilot!
Sandal, I would suggest that you have some very dangerous flyers at your club! A sloppy landing is one thing, but hitting people is just dangerous. These people you describe sound very dangerous and IMO action should be taken against them! Maybe if you implemented a system such as the 'A' test, you may not have these dangerous and inconsiderate pilots! - just a thought!
To answer your question - The 'A' test way is safer. You shouldn't need to have to go around several times! You're more than entitled to go around again if you haven't got the approach right, but you really should be able to do it, if it was just bad luck you can take your test again and would pass - if you're not ready you can still take it again, but you'll fail again! Simple as!
It works VERY well over here - if it ain't broke don't fix it!