Yes and no in my opinion. MABS current function is not what it was designed for, and they have had to adapt in the last few years to accommodate debtors with far higher liabilities. When it was formed, it's purpose was to assist very low income families with what in today's terms would be neglible debts (although not neglible to those who have to deal with that debt).
It could see a return to that function now, back to doing what it does best, with a spin-off model to refer clients following a basic assessment on to firms acting in the capacity of trustees in the new insolvency arrangements.
Because of the monitoring period involved in supervising a PIA or similar arrangement, the drain on MABS would actually increase if they tried to take it from initial contact, through the meeting and on to conclusion over the number of years involved.