I like what you're saying, but I see it differently.
Which is balanced by decreased value of additional coins, so less interested miners should drop out.
What people should do is not what people will do. Because of the hype, people are still investing into ever more expensive rigs and consuming ever more electricity competing in races they have no chance in until they realize they can compete in other races.
should primarily be excess green energy.
Yeah, it should, but it isn't. Personally I'd prefer excess energy drive electricity prices down, rather than demand increasing reliance on more stable and constant sources.