Nice post - I'm actually working on writing up a very similar idea myself, there's huge potential here. One point regarding your comment "This breeds creations such as sci-hub and torrents and other illegal innovations that swipe the funding right out of the researchers' hands." This misrepresents how Scientific publishing works. Scientists donate their work to journals for free, most top journals (excluding those few run by scientific societies) take all the profit for themselves and their shareholders. Therefore Sci-hub doesn't generally stop a single penny going back to researchers as none would have been given to them by the the publishers anyway.
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Oh of course that's a valid point, and in fact there are many schemes out there having scientists actually pay to publish, which is something researchers would buy into because of the desperate culture forcing them to do so, or get out.
I suppose it all further emphasizes the rough world it is out there for many