Then you just end up making a Rube Goldberg permissioned ledgerr.  In the real world, force is the final arbiter of consensus, which is why Bitcoin is based on the same principle.  PoW is just a wargame exercise moved from physical to digital space.  It works because force, violence, whatever you want to call it, always trumps reputation, age, or any other variable.  

Since Satoshi didn't and can't solve Byzantine generals, the only way the system can work is leveraging the variable of confirmations, which has no upper limit, with an open entropy source to make it impossible for a permanent monopoly of block validators from occuring over a long enough timeline.  

Get rid of perputal mining, then you have a permissioned ledger falling under the privatized vs public money aspect.  Get rid of the unbounded entropy source, then your confirmations go from useful to worthless.