Firstly, laying off C.O.'s would not solve the problem of appointing elders by agreement of the Governing Body. As long as they are appointed remotely, these elders could be looked upon as agents of the Watchtower Society. The liability chain might not be completely severed.
Secondly, I recall to your attention what happened years ago to the elder arrangement. The Society had to re-assert authority over congregations thru the Circuit Overseers. Brothers started to refer to the Circuit Overseer as 'just another elder'. They had to be re-taught that although all elders are equal, some are more equal than others ( to quote '1984').
It took years of confusion to straighten out the elder arrangement in local congregations because, basically, this organization only functions in a tightly centralized manner. They have to have a strong chain of command or things fall apart. This is why they now have a P.O. who often knows everything and other elders who know ( or do) nothing about what's going on.
The Society tried to have a rotating chairmanship in congregations and it was a mess, as so many elders were incompetent in leading anything ( and often, can only 'manage' things when their wives tell them what to do!).
Consider then, what circuits might be like if they had transient, part-time or rotating leadership. Also consider the surprizing animosity or rivalry that exists between bodies of elders - who would then produce a local C.O. from among their ranks. And what do you think might happen to circuit accounting? ($)
They already have a stunning problem with retaining elders and particularily, getting many elders to volunteer to do anything! Wiser Circuit Overseers know that you need to be careful if you remove a Secretary, P.O., School Servant or Accounts Servant hastily. You may get embarrassed to find that NO ONE wants the job that was vacated.
Would local C.O.'s get a leased car? Health insurance? A place to live? Would they be expected to be unpaid employees of the Watchtower, Inc.? I can imagine a few might want to 'move up' to a position of authority locally, but that can get old quick!
This is getting interesting.....
metatron