Why can't we just 'freeze' and archive the blockchain when it gets to a prescribed amount, say 150GB.  Then, start a new chain with a special genesis block that includes addresses and balances from the UTXO.  We hash that genesis block to get a verification value.  Then, all future transactions rely on that hash value to assure no changes have been made to the values of the genesis block thus assuring all values go back to the very beginning.  

Then we can do 1 minute blocks, or 8MB blocks to increase network capacity.  Each time the blockchain gets to big, we do another freeze operation to reset its size back to 0 with the history saved as a blockchain archive.  

In this way, we don't have to drag around every transaction 7000 transactions / second for the rest of time.  

Can anyone explain why this doesn't work?