OTC derivatives are used by producers and consumers to price market scarcity, real or perceived. It is largely a function of our free financial system (which includes derivatives) that we haven’t had REAL crises such as food shortages or other things causing mass death. Remember that derivatives, to an extent, take the place of the bureaucrat in determining production plans.
It is the OTC derivative that gives the farmer price certainty over a number of years. It is the OTC derivative that locks in fuel prices for airlines. The examples are endless. New over-the-counter derivatives are created every day by market participants - some very complex - but all designed to serve some market participant’s need.
The fact is that wherever there is something good in the economy (e.g. derivatives), government will try to get its grubby hands on it and make it less effective. Don’t blame the OTC derivative for any crisis - blame government/Fannie/Freddy/Barney Frank/Community Reinvestment/etc. The bailout was not the fault of the banks - it was the fault of government for giving the bailout. By the way, my firm received no bailout.
I am confident from the picture you give, that only the free market system will devise a stronger OTC derivative system resilient to economic downfalls. So far, whatever government does only adds fuel to the fire.