This year during the Jummah right after Hajj I had to stand on the road outside the premise and had to do Sizda in 'Ishara' as there was no space to do sizda (because of huge crowd). The capacity needs to be expanded that's for sure.
The rule of non muslims cannot enter Makkah/Medina was enacted during or Prophet (SM) time, I believe. There must be some reason behind it and as muslims all are happy with whatever was decided back then.
Saudi govt is particularly careful against anyone doing kissing on mazars even touching sometimes etc. Someone standing by the Kabah or Mazar is ensuring communicating to the people of the fact that has nothing to do with Islam. I liked this approach. I'm happy with the way the Hajj is managed this year. The distance to walk to Jamarat for (stoning) is part of the Hajj and some will have to walk less distance if their tent is nearer to the Jamarat. Ours was 1.5 hour walk away (one way). I heard Bangladeshi pilgrims (going from BD) was nearer to the Jamarat this year. To accommodate all the Hajis they have to spread the Mina tents and some will have space near the Jamarat and some will be far away. It all depends on how one's fate is fixed regarding one's Hajj and one has to accept it and keep on performing own rituals with utmost patience.