Law is a unique degree in that one benefits much more from interacting and discussing the materials than other degrees. You learn more from discussing issues with your peers sometimes than you do from listening to a lecture or reading a textbook.
Also, remember that the law is a profession...
I take it you're only talking about investment banking here, because if you're not, you're sorely mistaken. I only encountered two UWS students during the 2009/10 clerkship period at top tier law firms. On the other hand, I know at least 16 mac students who secured top-tier clerkships.
Sure...
Because it's true? If you want a summer clerkship in a top-tier firm in today's post-GFC market, you'll need a distinction average. In my experience, people without a distinction average are exceptions to the rule, rather than indicative of a general trend.
To the contrary, those policy type questions are what judges consider when applying the law. Whilst judges might not explicitly ask 'how is x section of the crimes act achieving justice for society and the individual' they take into account policy considerations, such as whether reading a law in...
Whilst you may not NEED the knowledge gained in legal studies to excel at law, it's a good way of finding out if you would be SUITED to the study of law. It would be terrible if you got into law only to find out that you hate it. Legal studies gives you a preview of what you are up for prior to...