I fully agree with your assessment of what is not the solution I also agree that it currently looks like everybody is arguing precisely to do just that.
However, I think research without ‘academia’ cannot happen, because research has become too expensive: there would be no biomedical research (my field) where a vial of less than a milliliter of enzyme easily costs hundreds to thousands of $/€ and biosafety labs easily cost more than the building they are situated in (or would you like to see someone experimenting with Ebola or Sars viruses in their garage?), no space research, no high-energy physics, no Neuro-Psychology (think fMRI machines). Essentially, in nearly all experimental sciences today, research would come to a halt - with the exception, perhaps, of some short-lived vanity projects of US American billionaires (we’ve all seen plenty of those already).
There are many ways to support oneself financially in ‘new academia’: freelance teaching, research consultancy, clinical work, non-research/education related work.
OK, let’s calculate this roughly: I currently teach, on average, about 5 hours per week (regular 9h/semesterweek in Germany). Let’s assume I get a building and biosafety labs, water, electricity, etc. completely for free (unlikely). Our small group consists of a technician, a postdoc and two graduate students, so only 4 employees. Let’s say their salaries are only about 40k a year, makes 160k a year. This means that just to pay them, my 250h of teaching a year would need to bring in that money, plus my salary (about 90k), which makes roughly 250k. So about 1000€ per teaching hour only for salaries, not a a single experiment is made and no equipment bought. So let’s roughly double that for these expenses and probably another doubling for lab rent and utilities and such. So I’d need to make about 4k every single teaching hour. At 100 Students in a class (only lectures, no experiments!), for a 28h semester lecture, that would be 11200€ per student for a single lecture. Sorry, doesn’t sound realistic to me and my experiments are cheap and my lab small, compared to what nearly everybody else in my field is doing. For most of biomedical research, you can probably add a zero to all my numbers.
Not sure how any of this could be done without public money.