If that is what your buddy has seen, that falls into "lack of enforcement," IMHO. If he can back it up, he's spotted someone already in violation of federal law. The rules for transfers do not have anything to do with whether a transfer takes place at a gun show, on a golf course, in a swamp, or a garage.
Now ask your buddy this: If such a person is willing to violate federal law at the gun show, does your buddy think that making another law will be The One Law that such a person won't violate?
I'm a lawyer, but I'm not your lawyer. If you need some honest-to-goodness legal advice, go buy some.