In your field, is this a real problem?
I'm pretty sure I don't want to spend 80% of my time stressed out about grants and 20% actually doing work or teaching. Unless thats not what the reality is, but from the jaded sources I've read, that seems to be the case.
But I am interested in the concern you showed about people keeping their work secret due to funding applications. In the world of CS, there are so many conferences because people are compelled to share every small step of progress instead of keeping it to themselves awaiting a huge breakthrough.