Personally i think that the rules as they are currently constructed cause more issues than they possible solve, but profligate unsustainable spending is, and always has been a concern, with a number fo high profile collapses along with a vast number of clubs reinventing themselves over time.
I don't think that in a free, open market, we should be preventing clubs from spending the funds that they have available to them and conducted an annual club solvency test with the owners having to stand up a bond covering any financial deficit would strengthen the financial security of clubs.
Of course a complete review and restructuring of the transfer markets and the salary spend at a player level would help, but the problem that we have is that the larger clubs from European leagues would then be circling if they are not bound by the same system. Unfortunately both Uefa and FIFA are too corrupts to devise a an environment that supports all clubs, players and the paying public at the same time. This will always continue until it all goes pop at some point.