So yeah, sure, in your rural example clean spectrum isn't a problem and you're noise limited rather than interference limited. The Ofcom proposal would be a good idea - but allowing 10W WiFi equipment onto the market would trash the unlicensed band indefinitely.
It seems Ofcom did listen to the responses:
They did give a little power bump in the 5.8GHz band... this isn't as much of a problem as there is much more bandwidth available at that frequency and the free space attenuation is faster so interference inherently isn't as much of a problemAfter careful consideration of the evidence presented to us by stakeholders we have concluded not to progress with allowing higher powers at 2.4GHz in rural areas.