I don't disagree at all with what you are saying.
I view policing the military more akin to the provincial police and contracted detachment work the RCMP already does in many localities.
Putting the whole force under the umbrella of DND is no different then the Gendarmerie and Carabinieri. They are a "militarized police force" and not a "military police force," albeit they have that role too. Their primary duties are law enforcement in the general and civilian sense and are often stationed in smaller rural centres that cannot operate their own policing.
I'm certainly not an expert on the interpretation of the NATO requirements to qualify as part of the funding percentage, but it appears that the requirements are fairly broad and permissive:
The first two factors are a requirement based on the level of training and equipping and are already close within the RCMP and with minor adjustments can be achieved. The last two are potential capabilities and not day to day duties. Those may require some legislative changes and they may not be that extensive when you read section 4 of the RCMP Act:
There are also fairly broad provisions for regulations:
I think the biggest legislative changes required would be under the NDA's provisions respecting the CF Provost Marshall and those could be started as simply as "the CF PM shall be an officer of the RCMP of x rank appointed by the commissioner of the RCMP and consented to by the CDS."
Don't get me wrong. I fully understand the difference between empowering legislation and the will to use it to create a paradigm shift in the fundamental employment of a group.
My point here quite simply is that with some minor tweaking of the objects of the force's training and duties, and leaving the vast majority of the force's basic functions and mandates untouched, you could convert the RCMP to a Gendarmerie without too much trouble (other than the anticipated friction within the force itself - they may need to be bribed with a "military factor" adjustment to their pay.)
The RCMP started as a para military force; this would just be returning to their roots.