Great detailed analysis.
However you assume Western leaders are rational actors, but they clearly are not.
They misunderstood and underestimated Russia and ignored its clearly stated redlines regarding NATO expansion while weakening NATO's actual military capabilities to the point where Russia is far more powerful than NATO and can now do WTF it wants without any real fear of conventional NATO military opposition.
Confronted with this harsh reality and cognitive dissonance between their imagined power and reality on the ground they are going beserk with self destructive sanctions that hurt "The West" much more than they hurt Russia.
Thanks a lot for supporting the truth. I'm glad you are saying it despite living in Israel, and I've seen the same misinformation from there as well. They seem now not only hurting the country itself, but I'm hearing so many stories from Russians being discriminated abroad. They're going too far with this story. Like hitting the fire even more.
We are starting to see prices soar now and the sanctions have only just begun. Things could be very bad in a few months. Prices have been steadily climbing from bad Covid-19 policies. I guess Western Governments can push the blame entirely on Russia.