Or joining Harry to make a Council of their own.. When you think how Wardens go around nabbing young possible future warlocks and lopping their heads off, and yet we know of at least two very talented wizards the go unnoticed.. Just how competent is the White Council?
I think it is heading to something like this. Yet truly, I think a lot of Harry doesn't want there to be a large White Council. I think as much as anything, Harry wants people to be left alone to look after themselves. The problem is when others start to form larger groups to take on those smaller than them...then you either must try and beat them yourself or join them or die or run away. So you run into the issue of making a governing body too small (i.e. it allows larger groups to form and dictate things). Because groups will inevitably form one way or another. A nation of individuals isn't a nation if you don't unify enough. But too much of it lessens the importance of the individual, which has it's own problems.
This leads us to where the White Council is now. There is a reason the original Merlin formed it after all. So Harry will have to make a choice to support a new White Council (because he won't want to run one), or be in constant opposition to it. Harry trying to remain neutral only works if he isn't attacked after all.
As for how competent the current White Council is...I think that depends on how you measure and define their competencies. Considering how bad things are now in Dresden's world, one could argue that the White Council has manifestly failed on it's core mission. On the other hand, considering how much worse things could be, one could argue they are succeeding. Luccio's discussion with Dresden in Turn Coat I believe illustrates this issue well. Harry comes off a bit immature sometimes in these discussions, which is understandable considering how long Luccio has been around.
More likely to join the Paranet, get themselves certified as a wizard by Harry (who was recognised for years by the White Council), and set up shop. Harry needs to get the Paranet set up as an Accorded Nation, he doesn’t need to recreate the White Council with all its flaws
I don't really get the point of setting up the Paranet as an Accorded Nation. Yes, they gain status and a measure of protection. But they also are then on the radar of bigger threats as well. Can you imagine witches like those Ordo Lebes practioners trying to mediate a dispute between the White Council and the Summer Court? Or Ferrovax and Drakul? Or Marcone and Harry? They just are not really at that level. They would need a sponsor far mightier than Harry, like some old god, and that wouldn't necessarily be a good thing for them.
To me, the Paranet are more like the Fellowship of St Giles or the Venatori Umbrorum. They are small level allies of more powerful entities.
At best, I think they could be integrated into the White Council. I actually think that's one of the biggest and worst limitations of the White Council - the fact they limit practioners coming in based on magical strength/skill etc. It almost feels a bit pompous or arrogant of the Council to exclude such people.
I do agree the White Council in it's current shape doesn't work well enough. It needs major reform, the kind of reforms that are normally associated with head-to-toe restructuring (and often because of mass death/exodus). Rebuild it from the ashes and all that.
Less Euro-centric, more decentralized, better strategies aimed at reducing warlock numbers such as early detection and prevention, a more 21st century approach to the mortal world, less of a geritocracy, a more nuanced and intelligent approach to mortal political issues, and finally a FAR more robust legal framework aimed at reducing wizards who live in the "gray" areas that don't break the seven laws of magic (and maybe add some more laws?). Just a few ideas that could improve it.