Once your C&R lapses, you no longer have to keep your bound book.
On re-application you will receive a whole new license number, and you can start over.
There's something satisfying in removing documentation. Frankly, the government's need to know does not necessarily trump citizens' need for privacy, especially as concerns 2A articles.
IMHO to me the balancing act is the FFL maintains the books and forms and ATF can inspect them simply to ensure compliance with record keeping, but cannot copy anything Nor search for specific people/items unless a judge issued a warrant and then only for the individual’s forms and section of the book can be copied by the ATF. When an ATF loses their license, by giving it up or having it rescinded, their bound book and forms should be maintained by a 3rd party, not the government. Part of the license fee should go towards funding the record keeping storage after the FFL is done. All records older than 10 years to be destroyed.
Collectors can go about what they are doing today.