imo eth should have burned when created new erc20 tokens, this way the system actually converting useful eth into tokens by burning the eth supply
Why would they do that? An erc20 token is just a smart contract, you're saying that when someone deploys a smart contract, an ETH's amount must be burned. And whose ETH? Smart contract's deployer's ETH? No way
BTW that is not a practical solution to provide any stability to ETH so that I also agreed with you if there will be this kind of solution surely it will make this terrible platform. This is impossible to choose this way to destroy all ETH who raised through any smart contract.