Three thoughts from someone with no expertise.

1) If you make legal disclosure too hard, the only way you will find out is via criminals.

2) If other industries worked like this, you could sue an architect who discovered a flaw in a skyscraper. The difference is that knowledge of a bad foundation doesn’t inherently make a building more likely to collapse, while knowledge of a cyber vulnerability is an inherent risk.

3) Random audits by passers-by is way too haphazard. If a website can require my real PII, I should be able to require that PII is secure. I’m not sure what the full list of industries would be, but insurance companies should be categorically required to have an cyber audit, and laws those same laws should protect white hats from lawyers and allow class actions from all users. That would change the incentives so that the most basic vulnerabilities are gone, and software engineers become more economical than lawyers.