Also note my thoughts (very much not even close to being a proposal) are very raw. Inviting this kind of discussion is exactly what I hope to do :)
Reduction of capability in general is not intended to address all class of security issue. For example you’d still want unsafe paste detection (to detect newlines or attempted bracketed paste escapes) on a prompt line.
But I think having a mechanism to eliminate the possibility of entire class of actions without wholesale disabling them in the terminal emulator is a desirable property. Right now a lot of these features are mostly on/off.