IMO the idea of "burning" (some people call it "freezing") is less worse than idea of redistribute Bitcoin from all vulnerable address, which also bring debate on how to perform the redistribution.
For re-distribution, there would be a quite easy and uncontroversial method: adding the coins to the future mining rewards to make the halving curve a bit smoother. IMO if this is an option the rewards should be moved into the far future, for example when the regular reward has fallen below 0.1 BTC or so.
Distribution method you mentioned definitely less controversial than other method i've seen. But aside from hard fork, it also add some technical complexity about changed mining reward & which Bitcoin from which vulnerable address/UTXO should be taken.