I think part of the problem is that everyone lobbies, so they effectively cancel each other out. It also forces everyone to lobby. If you wanted to get rid of lobby groups, you would have to lobby the government for it.
It brings to mind something I was told about tobacco companies. Apparently, they were glad when they were banned from advertising. Adverts hadn't been bringing in that many new smokers (that was mainly peer pressure behind the bike sheds), but because all their competitors were advertising, they had to or loose customers to other brands. Banning advertising barely affected their sales, but hugely reduced their expenses, leading to much greater profits.
The same would be true if lobbying was stopped. Companies would save a lot of money, but the overall effect would probably be the same.