That would certainly cut the IOC out of things and render the Olympics perpetually irrelevant. Not necessarily a bad thing. I would be quite surprised to see the IIHF and the NHL so cozy together long term, but stranger things have happened. Both the NHL and the IIHF are necessary for a best on best, and ideally neither of them would have complete power in organizing the event.
It's not the Olympics becoming irrelevant. It's hockey becoming irrelevant. Great PR for the sport.
And comparing the solution for the olympic soccer is not comparable at all to the situation in the NHL. Football has this solution because it already plays a major cup every 2nd year, where leagues shut down for weeks
every season.
To compare that with the situation where NHL can't shut down the league for half a week every year on average, is a joke.
Why even discuss a "solution"? Hockey is a fringe sport and will be so for eternity, because it's unfortunately a major American sport, where every sport is pure business. They feel zero responsibility for the society, the society should only contribute to them.
Don't change the olympics. If the US and Canada (THE NHL) don't want to play competitive international hockey, then good riddance. The NHL will uphold their farce of a "World Cup" tournament, where such teams as Team He-Man can try to win gold against Team Golfers.