Unable to handle the workload
The USPTO is already having trouble handling the demand, how could they cope with the additional work of conflict resolution?
Many cases go to trial because of patents that one of the parties in the case believes to be invalid or non-applicable to them.
In cases where the USPTO has granted both parties a patent, they have already declared that there is no conflict... so people would still need to go to court.
Maybe Kaytal is just trying to avoid some budgetary issue; its there job, and if you want us to deal with it, you'll need to give us some special budget for it.
Maybe Katyal should go after the USPTO for irresponsible behavior :P