I have a mixed answer, yes and no.
I think it's unfair that it always counts when it's the only subject to do so. That's unfair for ATAR calculation to people.
However I still think you should have to do some sort of English during yr 11 at least, maybe yr 12 too. But no necessarily HSC english as it is, I think the curriculum for it should be a bit different. Though I think the IB/FB has a good idea where you don't have compulsory subjects, but you have to do some from each category. (Like some humanities, some mats/sciences and a language).That liberal education is a good idea because so many people change what they want to do at the end of HSC. Also would make the ATAR more useful as people couldn't just capitalise on one good area, the people who do the best would be well rounded.
That said, atm, I would probably drop Eng if it weren't compulsory, it's too subjective for my liking (despite liking creative writing and reading books, but I hate comparison studies and themes and all that main stuff you do in snr years).