Basically, the intent of the proposal is understandable but it does not make sense as written.
The spec does not explain how to compile C code, it gives you a set of rules so that you could in theory take some piece of C source and a full execution trace and verify whether that trace was a conforming execution for that C code.
You take the example of the negative shift again, and it is addressed in the post you respond to : it's a perfectly fine proposal to demote negative shifts from UB to something less permissive to the compiler.
However, if you do so, of course, you have to frame what behaviors are accepted for a program doing such a negative shifts, just as you did in your post !
So let's say : arbitrary (but consistent) values are fine, termination is fine. That's great because it means we can still compile a shift to a CPU shift and there's no UB anymore. Ok.
Same goes for signed overflow.
However this is a case by case process, and you will absolutely not be able to ascribe meaning this way to many forms of UB. For example, as the GP said, storing through an invalid pointer.
If you want to compile a pointer store to a store instruction without runtime checks, then possible observable behavior include : other variable changing values, function call not returning to their calling context, and even of course running a full ROP chain exploit !
It's no surprise that in that case the specs says that the set of allowed observable behaviors is anything.