Excellent post as ever. You could say that FFP has played some part in increasing financial stability but what has done at least as much if not more than FFP is rising TV and commercial revenues. UEFA claim that net debt or that debt as a proportion of turnover has decreased but I've worked out that gross debt hasn't decreased to any noticeable degree.
Imagine the retail sector, with major store groups struggling on the high street and a couple of big ones failing. The Department for Business decides to step in and brings in legislation that means stores must break-even. An ambitious owner sees a chance to invest in their smaller, niche business and take over some of the prime locations vacated by the failed stores. It's a big step up for them and they'll need capital to do that. Rents will rise, as will wages and other overheads. They'll need to invest in stocks and as a consequence of this increased cost base the business will run at a loss for a while until it's established. But they're not allowed to do that.
Any attempt to defend that ludicrous position would be laughed out of court.