The moral of this morass: eliminate the mortgage interest deduction once and for all.
Why, that would be like ending the levy of a fine on anyone who doesn't do what the government wants! How dare you suggest the Constitution doesn't have a Social Engineering section!
Next you'll be going off the deep end and suggesting that infertile couples not be penalized and taxed at a higher rate than a couple with the same income who makes the choice (and is able) to have a kid!
Why, you sound like you want to take us back to days of sanity!
I’d add to both of your suggestions: abolish public education, with the result that property taxes would be significantly lower, which would probably be the equivalent of the mortgage deduction.