It was then established that a signal aimed at deliberately blocking or jamming would have to be 40 times stronger or more than the signals sent by the sensors due to the inverse square? relationship of signals and distance.
You are mis-quoting. If the distance from sensor to siren and the distance from blocking TX to siren are equal then the effect will occur when ERPs are equal. If there is a wall between sensor and siren this will reduce the signal from the sensor.
Is it also true that there is nothing at all stopping someone so minded from jamming the licenced frequency?
One word answer. Yes,
It is equally simple to jam a licenced radio channel as it is to jam a licence exempt channel.
Hence the reason to use wired and not wireless for critical systems of fixed items.
Hence the reason that systems that have no option but to use wireless due to one or more items being mobile will adopt counter measures such as automatic channel changing and compelled signalling protocols.
But you must also consider that licenced channels are allocated to the users in a way that aims to avoid adjacent users having the same frequency. Blocking and / or jamming will be investigated by the licencing authority and action taken if necessary.
You must also accept that the terms of the use of licence exempt channels require that equipment is tolerant of interference from other users of the channel. Blocking or jamming may be investigated but no action can be taken unless non compliant equipment is found to be transmitting.
Anyone can buy a compliant licence exempt transmitter and use it anywhere they want to. They can also buy non compliant transmitters that are higher power, one of these items is specifically aimed and sold as a jammer.
After all a professional burglar is hardly going to say . . ooh I better not jam this signal I don't have a licence is he?
If he jams a licence exempt channel with a compliant licence exempt transmitter he is not committing an offence unless
intent to jam for an unlawful purpose can be proved. If he jams a licenced channel he is commiting an offence under the Wireless Telegraphy Act, an old law but with very sharp teeth when offences occur. Forced entry to the private property where the transmitter is operating is one of those teeth.