None of the downsides are exclusive to ordinals and inscriptions, but rather just being a key driver of them at present. The UTXO set increase can in part be resolved by consolidations of inscription collections into a single UTXO for those wanting to hold them long term.

But yes, a "fix" that prevents being able to make inscriptions following the OP_FALSE OP_IF ... structure would be worse in that a format using logically permissible would consume more space. The better fix is do nothing, have low time preference, and let fees and the effect of subsidy halving take their course.