I tend to agree, actually. In some sense the real solution is take science off its pedestal, as it does not generally deserve to be up there. The 17th-19th centuries were in some sense a fluke of low-hanging fruit, and the science of most of the 20th and the 21st centuries do not deserve to be regarded with the same worshipful gaze, a word I choose carefully. By taking it off its pedestal and subjecting it to a lot more scrutiny, we'd all win, including science in general.
This is not necessarily because we're worse people than them, but because the problem is now much much harder. It's always better to acknowledge that hard problems are hard, rather than trying to solve them by pretending they're easy.
As for the model I would propose, I believe all funding models are fundamentally flawed, and the best model is all of them at once, so hopefully the flaws at least sort of cancel out. At the moment, that generally means seeking a decrease of the current government funding strategy and breaking the peer review monopolies, not because either of them are necessarily especially bad, but because they are too powerful and their flaws are coming to define the flaws of science in general.
Some of this would just be a mindset change, to recognize that "research" isn't isomorphic to "producing peer-reviewed papers" and that there's nothing wrong with setting up some equivalents of Xerox Park in other disciplines. Potentially with government money, since my point is more about multiple models than the literal funding sources. If "science" as it is practiced today was less pedestalized, this would be a much less horrifying suggestion.