I proposed something similar a few months ago, see Squash auto-saved document revisions? but the feedback I received from @tmortagne is that deleting page revisions is dangerous.
Moreover, I’m not sure that clicking undo multiple times (during which other users may introduce other changes) is better than restoring the content in one click from the Recent Versions dropdown.
This won’t solve the issues that you and @Simpel raised:
I don’t think we can have the same amount of clicks with the realtime toolbar, and I don’t know how many clicks are needed to not consider this a regression.
Thanks,
Marius