I agree that on the face of it it seems a bit idealistic and not entirely realistic but I think it is a start in the right direction.
There is debt and then there is debt (it is unusual having this conversation with people who aren't jambos or huns). The finances of the world would collapse if everyone had to pay off their mortgages tomorrow. Clubs should be allowed to borrow as long as they are able to pay back and they should be heavily sanctioned if they can not/ will not.
We do need to get firm rules and sanctions in place to act as a deterrent for financial jiggery-pokery. 15 point penalties don't even scratch the surface for clubs that can cheat for a generation before being caught up with - clubs who cheat themselves, their own fans, other clubs and their fans, Scottish football in general, sponsors, European opposition etc etc.
I think the bare minimum is that any team who has to enter administration/ faces liquidation has to start at the bottom and tough 5hit if they never recover. That will focus clubs minds on living within their means. And if we were to fall foul of it then so be it.
One of the most shameful facts is that so many clubs have failed to learn from their experience and ended up in trouble shortly afterwards.