Upon reflection, I don't really think the "Russians can compete but not as Russians" punishment really makes sense. For starters, it doesn't really mean anything. I'm pretty sure the guys on the "Neutral Athletes" team who won gold in hockey last Olympics feel like they won a gold medal for Russia and the propaganda value is still there if a Russian athlete wins.
But more to the point, the pressure for reform to the Russian system should come from within and if the Athletes still get 99% of the experience/reward of the Olympics, that's just not going to happen.