separating the component elements is functionally impossible
No, it's actually easy to pull apart the different components of a panel and can be done by hand. The main expense is the labour.
The labor cost is the problem - it costs $10 to $20 (AU) to recycle a panel, but the value of the parts vary based on the cost of copper, silver and aluminium and so capitalism struggles to make a consistent profit on it. Hopefully as the oil crisis worsens, transport costs will probably go up and the profitablity of recycling should increase.