the complete proposal is here: https://nxtforum.org/core-development-discussion/nxt-2-0-design/
important to note is that this is an ongoing discussion

the proposal has up and downsides. i agree that the asset market would take a hit, but i think that most likely only the bad assets would not recover. solid projects would. i'm not happy with it at all either. if anyone has any ideas on how to make a transition 'fair', please go ahead and suggest.

one thing i would completely disagree with is that nxt is in its 'death throes'. the proposal is there to keep nxt on the forefront of technology, thus to ensure its future. the proposal will enable scalability (and flexability) other cryptos are only dreaming of. to grasp the importance just take a look at the current bitcoin discussion about 1mb/2mb blocks.

i personally think that the dev team is not taking the needs of nxt users into consideration enough. this also goes in line with the API changes for no good reason. these problems have been there in the past and i think there was a 'mediation' job for a while to better communicate things. if i'm not mistaken that position is currently vacant and it would be a good suggestion to fill that spot again with someone capable.
the positive side of this is that nxt core development has been going at an amazing pace. features have been added frequently, just recently coin shuffling, data cloud etc etc.

i think fatalism, like yours johnny, doesn't help at all. instead we need to discuss. and yes i read your idea and it has been cross posted on the nxtforum for others to read.