1) Bash teams are unlikely to lose (150k+Winnings) in player cost in a game. Value, maybe, but not cost. Ditto midrange teams, and if they do it's so much damage that I don't see why you'd penalize them. This really hits elf teams. Really, ultimately, it's a penalty for the unskilled and unlucky, because only they go broke, and only bad money managers stay broke.
2) You protect your ClawPOMBers because they're impact players and it takes time to build them. If your Star dies, replacing his tackle zone is not the problem. (Oh, and PO saves lives: it will make him MORE likely to PO, so he can't get blocked back.)
3) The difference between races when it comes to hoards is about 10 games and about 300k at peak. Once elves peak, their Treasury climbs at almost the same rate as Chaos, a little slower than the midrange teams who never hit SE so their money just keeps on flowing. Even Skaven, for crying out loud: the Journeyman rule means an 11-man rat team has 5 guys worth replacing until the treasury hits overflow mode (and maybe MVP Journeyrats if that's your thing). Show me a counterexample and I'll show you either an outlier result or a money management fail.
4) I've dumped 150k to buy a Wizard quite a few times, and I've had it done to me. My experience says that no matter how perfect the math works, it's always the wrong decision. If you're the favorite, there's always something the underdog wants with 150k more gold, and if he doesn't have any use for the cash, the match was already so far uphill that it doesn't merit the expense. Heck, even if you just upgrade as a 110k to 140k underdog, you're really not doing yourself much of a favor over the Bribe or Babes you'd have gotten. Even as a 50k-90k dog, where you can get 150% value for the second Babe at just 100k, it's still pretty meh. If you don't believe me that it's meh, two less-disruptive fixes would be to either cap petty cash if you think big money is the problem, and/or to add Petty Cash to both sides' inducement totals rather than to TV, if you think gaming is the problem.
5) If my opponent is up so much I couldn't spend the extra value when he dumps half a million gold to beat me, I've already won. I'm already in his head. He's put so much more into the game before it even starts… all I can do is sit back and

We'll see pretty soon. FUMBBL has taken Treasury out of their Team Weight mechanics, so there will be a lot of fat wallets running around in what are functionally TV-capped tournaments. I'm predicting we'll be underwhelmed. It's not like we don't have a lot of experience seeing rookie squads up against 2M squads with 2M Treasuries, and it's not like the "favorites" don't tend to win those matches without resorting to Petty Cash.