The real problem is not that the proposal restricts data heavy encodings, because, as acknowledged, inscription methods can always mutate, adapt, or migrate to L2s. The problem is that the BIP attempts to fix this issue by confiscating funds while failing to actually solve the underlying problem it targets.
If arbitrary data insertion can trivially adapt to new encodings, then restricting certain patterns does not eliminate the behavior.
It merely breaks existing outputs and punishes current users while leaving the door open for the same activity to resume in a slightly different form.
So the contradiction is that you don’t stop inscriptions. They evolve, migrate, or re-encode.
But you do destroy or freeze funds, which undermines one of Bitcoin’s core principles, that validly created UTXOs remain spendable according to consensus rules.
Therefore the cost of confiscation is real and permanent, while the benefit, stopping data abuse, is temporary and ineffective.
In that sense, the BIP resolves nothing, yet introduces a precedent that is far more dangerous to Bitcoin’s monetary assurances than inscriptions themselves.