I am still a young old man! Your proposal is good. No, it is great regardless of the consequences to new emerging companies. If a company can not legitimately "sell" their product on merit, then they should not be in business to begin with. That they can do this is profitable for them and for their MMs who nake short the stock. Convertible stocks result from, in my opinion, MM activity.
Back to the proposal. I don't think that the death of nake shorting will happen in my life time. I've written several letters/complaints to the SEC regarding what appeared to be gross injustices. I did not even get an acknowledgement!