Why would removing it from the ASX be punishment? If it is a...

Why would removing it from the ASX be punishment? If it is a viable company and never re-lists, how is that getting rid of bad eggs. The business is still ongoing, like many private companies not listed on the ASX.
Maybe then management can buy back shares from current holders for 1c as there will be no market to trade the shares and go private again. That will make a great example!
The ASX provides a facility for private companies to go public, enabling them to raise capital through the market when needed to expand the business. If there is no need for capital then listing is pointless and being listed is a pain due to all the reporting and corporate govournance required. Making an example of a company by punishing the shareholders will only make investors wary of any company in the future, causing less investment for smaller companies and slow economic growth going foreward, not to mention the higher PE’s of established businesses or money going offshore searching for better returns.
A better outcome here would be for the ASX and ASIC to punish the culprits for any wrong doing, both admitted and if needed other issues raised from the investigations, and enable a viable company to continue to operate for the benefit of the shareholders.
From your post you obviously think the AFR should be judge and jury. Maybe wait for all the information.