Without the resolution regime, regulators might face the same unappetising choices they had in 2008: allow the firm to go bankrupt (like Lehman Brothers) or bail it out (like AIG).
Utopias (incidentally the coined word Utopia doesn't mean "a good place, " it means merely "a non- existent place") have been common in the literature of the past three or four hundred years, but the "favourable" ones are invariably unappetising, and usually lacking in vitality as well.