1. You can get a lot of that data and those tools for free already. Webmaster Tools and Google Analytics.
2. Many of the things you'd charge for are things people don't understand anyway. In our little hacker bubble we know how valuable this stuff is and see a fair amount of companies use it but the vast majority of websites are operated by mom and pop shops and mom and pop can barely figure out how to turn on their computer. Expecting them to have any interest in getting or interpreting those reports is like trying to get them to learn quantum theory. You'll end up with a very limited customer base.
These paid options create an unfair advantage. It's the exact reason why Google was so successful. Google is trusted and popular because it isnt a pay-to-play system. People will quickly figure out that the rankings are biased and quit using the engine. This is a step backwards in search.
Saying that charging to unpenalize a site isn't a pardon but a "reset" is disingenuous. Call it whatever you'd like but in the end it really is a pardon. The idea is to discourage sites from gaming the system and your whole idea is to encourage them to. What we'll end up with in the end is that what you call "garbage sites" are just sites without a lot of money and "legit sites" are those with money.
I'm sorry but your plan just takes us back to the pre-google dark ages of search.
2) There's a whole SEO industry that operates on a hazy interpretation of what Google is supposed to be doing these days ... lots of companies know what SEO is, they know what it does, they know why they need it, and they pay out the arse for it. This brings clarity to that industry and those companies instead of letting them reverse engineer the changes you make and speculate on what matters. If they're willing to pay $100s/hr for SEO they'll surely pay $1000s for a roadmap straight from the source. That's like a printing press for money because that data expires when you act on it.
Money creates an unfair advantage right now. Pay people to spam backlinks to your website and you'll rate higher. Pay people to write summaries of blog posts and eventually you'll rate higher than those blogs you're sourcing your content from just because you can afford to generate more content faster. Pay people to submit and vote on digg, reddit, bla bla bla. Pay people to write about your product and create content. Pay people to market your site by writing content tailored for social media communities and get 1000s of backlinks. Pay people to do viral marketing stuff. Pay people to link to you. Pay Google to feature you above the search results.
The 'pardoning' is a little scammy and would be difficult to implement but the goal isn't to encourage them to take advantage of the system, the goal is to get your share because they're going to take advantage of it regardless. Google does this already via AdSense.
Furthermore I don't think there is a way to get data that is any less vague than it is now. Each site is so unique that this solution can't scale and you'd have to settle for analyzing the data yourself. Also, Analytics does have to do with what you described when it comes to seeing what's working as far as SEO goes and yes, AdWords would be more appropriate as an example when talking about competitor and keyword research. For some reason I thought those tools were in GA.
Generally though this really seems like a return to the bad old days except instead of keyword stuffing your meta tags you pay to play. Your whole plan would lead to the end of truly organic results. Yeah, the system a
Ready gets gamed now but at least everyone has am equal shot of gaming it. All you need is the knowledge. The current paid techniques of gaming the system would simply shift from third parties to the search engines themselves. I also feel like what you describe is closer to a paid directory with search functionality than a search engine. I mean, even if it worked like search does today plus those paid features it wouldn't be long before the true search functionality became irrelevant and we'd be left with a directory where whoever paid the most came out on top.
To your credit, I agree that it would be nice to get some more data, better data, and data presented in a more human-friendly/layperson-friendly way but you lose me as soon as you get into a lot of these paid features that help you rank higher.
There is nobody out there who knows exactly what is going on or whether your redesign is going to help or harm or whether your content is the best it can be. But they will charge you lots of money to apply what they've observed to work before or to automate processes and monitoring and performance.
All of this happens today without any specific clarity into how Google works, I don't think it would worsen the situation if the guesswork was taken out of the equation - sites with no SEO still won't matter, sites with SEO still will, and bad people/sites will still be an on-going game of whack-a-mole.