Edit: All I'm saying is that if you want to allow players to trade cash for debt through life support there's no reason not to go all the way with it. Not unless you're intentionally trying to encourage players to sell down the price of life support, which I guess would be a valid reason to do so.
Who knows. Before autosell, life support and debt interacted in a dumb way, and Soren thought it was ok. People couldn't argue him into changes when the problems were much clearer, so you'll have an even tougher time now. I've been very careful not to advocate for certain changes, not because these changes are good or bad, but because any benefits must be presented in an understandable, obvious way. Design is very hard, and someone who can differentiate good design and bad design is exceptionally rare and expensive. For everyone else, the tradeoffs must be explained in a way a fifth grader can understand.
What I can guarantee, however, is that "encouraging players to sell down the price of life support" is not the reason the current design was originally implemented. There was no reason for the current design, given its historical context, since it didn't work that way. But there's a good reason now: it works, and without an obvious, direct problem, Soren is unlikely to change it. You could easily be right that life support to debt is the better model, but how do you plan on convincing him? I don't see how it's possible to simplify the considerations so that anyone less than a top-4 player could understand. Even one step down to top-10 and the player is unable to understand much of the market, rendering any argument full of holes.