I think the point of it isn't to "reward" the players but to lift spirits and build solidarity within the roster by making them feel like they belong to something that stretches back to a time when the club was successful. Not just successful, but ominous. This is what Kevvie was brought in to do, not neccessarily to win straight out of the gate.
Right now the club is hemorrhaging the players they want to keep, while being lumped with white elephants like Milford. Not only is the club short of money under the cap, but it's lacking the appeal to attract players for the longhaul in the hope of it paying off later.
Shutting down the fun as a way of punishment might seem like the appropriate medicine, but it also might drive them away from the club to somewhere they don't need to be punished.
Losing Walsh - by far the brightest prospect they had coming through - should be a massive wakeup call that they need to make players want to stay because they don't want to leave the family. This is like when the Cowboys let Ponga go.
Blaming the media for shining a torch on the club's rotten underbelly is only sweeping the problem under the rug.