I don't think you're wrong, A good write up of the economic incentives would be really interesting.

Regenerative practices would probably initially look like a reduced high side profit, and reduced land yield intensity but at significantly reduced input costs on chemicals and pesticides. The labour costs might be higher or lower depending. Then over time, yield to use would show for area in production actual profits were better but still to a lower high point. More certainty as long as e.g. massive disease or pest risk didn't strike.

And as long as organics have a higher premium price at lower yield, when the soil can pass the certification tests for residues there's a new profit highpoint.

That's my sense but perhaps there are better takes on it.