Yes, I completely understand that this type of blanket ban is unfair to the Russian athletes who don't dope and would never dope. However, by enacting such a strict punishment, the World Doping Agency (or whoever enacted the ban) would show they are not effing around. Further, it might make the athletes pressure THEIR own country saying you better effing take this issue seriously because if you want us to compete under YOUR flag and possibly bring glory to the Motherland, again, you better take this seriously. And, where possible, the athletes could threaten to give up Russian citizenship and compete under another flag.
Again - this is about how seriously the various sporting organizations / countries / athletes take the issue of doping. The nuclear option would certainly get peoples' attention. A mere slap on the wrist...not so much.
There are plenty of other countries with questionable records as well, lots of use of asthma drugs and a history of covering up as well.