I think these rules will stop the best horse in the race winning in many cases and will also mean horses with 'character' are much less effective and that can only be bad for the game in my opinion.
I have to take issue with that. There's a lot of rawmeishing about 'lazy horses won't win anymore' - well, good! If a horse needs more than 7/8 strikes with a whip to do the job it's bred and trained for, there's an argument that it doesn't deserve to win. That's assuming the bollox is even true in the first place. There's no horse currently in training more notorious for 'just doing enough' and pulling himself up in front than Big Buck's - but he did alright in his championship race at Cheltenham when Ruby dropped his whip over the last flight, with the hill ahead of them.
What should theoretically happen is that the willing horses, who run on without having to be 'stoked up' by over-use of the whip, will win more races, therefore becoming the more attractive breeding propositions and ultimately resulting in the trait of 'genuineness' being bred into the Thoroughbred - which can only be good for the breed and the game. It won't happen overnight, but it's a potential long-term positive benefit.