I don't know how rev sharing is set up but I would imagine it would depend on the weight of the fines. This also doesn't remove the player salary cap. In theory, if 10 teams spend over the cap by 100,000,000 total, 20 other teams get they percentage cut. Lets say there was another $50,000,000 in buyouts from teams. For a team like the Coyotes, that could be $10,000,000 from rev sharing? That income from rev sharing, plus say $5,000,000 of our own funds, we could buy some pretty big names. $10,000,000 in rev sharing could also move our internal budget from $72,000,000 to maybe $78,000,000. $6,000,000 is a top 6 player we otherwise would have gone without.
There is also no guarantee that the players that the rich team sign that bring them over the cap even contribute much. We've seen teams time and time again spend $6,000,000+ on a player that plays closer to a $3,000,000 player. If that $6,000,000 player is also 100% above the cap, they pay an additional $3,000,000 in rev sharing ($9,000,000 in total cash if using equal years). If your $9,000,000 player is playing like a $3,000,000 player, you'll be inclined to buy him out and save that money over the next X years of being over the cap. That's additional funds to rev sharing and raising the cash flow of the lower rev teams towards players and coaches.
This also does not remove the money owed to that player, which the team will still have to pay.
Team Owners will only allow for so much of this to go on. This is their money and none of them want to bleed money without a strong chance at a championship. Owners will reel in GMs if things get too out of hand.