Wilde!
Dang Wilde, great post! Obviously you know a lot about the issue. I knew all about the contribution of Chinese to the railway, the importance of the railway to the nation, and the poor treatment of the Chinese workers, but I knew very little about the rest of it. Thanks for the lesson in recent history!
I'm really not a Harper fan (although I've been forced to admit that so far he's been doing a better job than I expected), but he's absolutely right when he says that it's more meaningful to have some redress while some of the people who suffered are still alive. IMO an apology is fine at any time, but compensation is really only meaningful while the wronged party is still alive.
And that's one of the many differences between the head tax situation and the first nations situation. In fact, the situations are so different, I don't even know why we're discussing them in the same thread.
Since we are discussing both topics, however...
OK, here's my take on the first nations issue. It should be clear to everybody by now that the status quo solution status sucks

The problem is that rather than addressing any real issues, what we're currently doing is simply training the first nations people to rely on government handouts their whole life. This creates a lack of motivation amongst them to actually be self-sufficient, partly because they simply don't have to, and partly because by treating them so differently, we're essentially telling them that the rest of the nation doesn't believe that they're capable of making it without our handouts.
So, what should we do instead? Well first off, we should damn well stop having seperate rules for first nations compared to members of any other ethnic group. It's flat-out racist.
Second, we need to abolish reservations. They're ghettos with another name. Instead, I would suggest that each reservation would be changed such that it is considered private property owned co-operatively by members of the band. The land would then be run just like any other co-op, with no special rules.
What about the whole native-fishery issue? It's another racist policy. I have no problem with allowing first nations people to fish enough to provide their own food (in fact, I think everyone should be able to do that), but commercial fishing is another story entirely. Make them follow the same fishery rules as other races.
OK, so that's what we should stop doing. So what should we do instead? The number one priority should be to PROVIDE BETTER EDUCATION!! The high school drop-out rates amongst first nations are abominable. Is that because they're dumber than the rest of the population? Of course not! It's because the government handouts simultaneously reduce their self-esteem and make them feel that they have less need to go to school! OK, it's more complex than that, but IMO that's the biggest issue. High school isn't the only problem either. We need to get more first nations going to university, college, or trade schools. How do we increase their access to post-secondary education? Well making sure that they all get to the post-secondary stage in the first place is a damn good start.
So do I have all the answers? Of course not. I fully expect that there are issues at work that I don't know about. Despite that, I'm convinced that the fundamentals of my ideas are sound, and would make for a FAR more equal society, including a significantly higher standard of living for the average first nations person.
Oh, and for the record, I'm a first-generation Canadian. My parents immigrated from Europe, and were dirt poor for years until they managed to eventually build a good life for themselves and their family. They did it without any handouts from anyone, but they also did it without being shoved down by anyone. That's the opportunity that everybody should be given.