What would I like to see change? Keep IAP, but limit IAP to things that you can only buy once, and limit the # of IAP items to some reasonable number (say, 10, with permission to increase with human oversight). This retains the ability for developers to offer add-ons and demo play, but removes the capability for freemium developers to milk customers.
Does it destroy the freemium game model? Sure, that's the point.