>the biggest problem has been granting patents for inventions that at least in retrospect seem non-novel or obvious.

I don't agree that that's the biggest problem. I think the biggest problem is that patents are abused to stifle competition by refusing licenses or putting untenable fees on them. No one would have cared about Nintendo's D-pad patent if they'd just put a reasonable license fee on it. On the other hand, a patent like MP3 I would argue is quite legitimate, but putting a patent on a coded just makes interoperability more difficult. If MPEG had charged licenses for decoding chips and explicitly allowed software implementations, that would have things so much more smoother.