Roxie, stick it out. By 2012 the new nurses qualifying will all be degree nurses, and you won't get a look in unless you complete your degree, you will be stuck as a care assistant - which you might enjoy now, but if you have been funded once to take the pre-reg programme and dropped out, you might find it more difficult to get funding/sponsorship if you change your mind in future and want to go into nursing.
IMO, funding in the future is very unclear at the moment (I am sure that it will be there, but all the changes in the NHS at the moment mean that Health Education England will be taking over English Uni funding for health programmes in a couple of years' time, and the pathways for getting that funding are not known at the moment.
The majority of the form-filling is all in the interests of patient safety and clinical governance - you won't lose your hands-on opportunities but you will be an informed and reasoning nurse when you get your degree, with the opportunity for autonomous leadership with your nursing role.
I went to a seminar a few weeks' back about the shape of the nursing workforce once all-degree nursing comes in in 2012, and the nurses emerging will be a very different breed from the diploma nurses. Your earning power will be greater too, with the degree.
You really need to look at this from every angle - including considering the uni fees which have been paid for you if you drop out, and what opportunities for the future you will lose personally if you don't become a registered nurse.
Good luck with the decision making, I am glad you are not taking this lightly - it's about your future!