I concur with the rest of your argument, but I think excessive penalization should be upheld as long as Russian forces are in Ukraine. The more penalization, the faster that war will end. After war - yeah, some sanctions should be lifted.
It looks like similar problem as with Germany after WW I. They got held down too much "so that they pose threat no more" and it backfired. Western world tried to appease Russia with economic integration and flow of capital, but it still didn't work. Germany somehow departed from their war-oriented path, how would you do that with Russia?