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I kinda like what someone said in a comment thread on this proposal elsewhere -- for every defensive penalty that gives an automatic first down to the offense, the analogous offensive penalty should create an immediate 4th down (or loss of possession if it is 4th down). So, for example, if the offense is called for holding on first down, it's now fourth down.
To me, that's too much, basically ending a drive. BUT... I have no problem with losing a down. Offensive holding... 10 yards and loss of down.