Aloha,
The point of this is so that your team isn't handicapped by having HP removed due to careless team mates.
How does removing ALL income from a battle dumbing down the game? Right now, you can TK, still get XP and credits etc from a battle, be even in a pink status or locked to coop and go out and still repeat the same offense. With this new system, your team doesn't get punished with losing HP, the offender can lose all income from a battle.
-Hapa