First of all I want to preface this with the fact that I don't TR, it's a mechanic that I appreciate but personally don't have time for, I much prefer late/endgame play, I usually only roll a new character to play with someone specific or try out some cool sounding build, both of which makes the extra XP required and loss of a capped character too much of a negative for me.
However, I do think the current proposals for changes to the TR system are complete and utter tosh.
Here's my take on what would 'work', having read a lot of counter proposals from players.
True Reincarnation : No Changes.
Iconic Reincarnation : As TR but allows TRing into an Iconic. Due to the fast tracking to 15, could feasibly cost a little more than TR hearts. Iconics grant Past Life: Iconic.
Epic Destiny Reincarnation : Available at 28. Fast tracks next life to 20. Grants an ED past life for the active, XP capped destiny, Does NOT grant a class or Iconic Past Life. Clears all Destiny XP, but importantly: Retains Fate Points and all previous Destiny unlocks. Can Bond 1 ED to not be reset Each life (Must be capped, not the ED that will give you a past life, does not carry over (Bonding a ED for next EDR clears previous bond), in essence is there to provide instant Twists). 1st ED Past Life unlocks Tier 5 Twists in that Destiny, 2nd grants Tier 6 Twists. Potential for 6/6/6 Twist setup given enough grinding (though that would be an insane grind).
Epic Destiny Completionist: Grants the Core Abilities of your Bonded Destiny whilst not in that Destiny.
As a late/endgame player who has ground out some but not all Destinies that Epic Destiny Reincarnation would appeal to me as it would effectively just reset my Destinies while leaving Fate Points untouched, offering a different way of farming Fate Points.