I believe that trying to argue about Sleep's brokenness is irrelevant as long as the Sleep Clause mod is in effect and said mod should be removed entirely.
The issue I have with the Sleep debate is that it is based from a modded version of the game.
When you first arrive on Smogon or when you first play OU on Pokémon Showdown, you'd believe you are talking about and playing Pokémon. However, this isn't exactly the truth... as we have, indeed, modded the game.
This is, by definition, and before even starting to talk about Sleep's competitiveness, a bright red flag and questionable integrity.
The current sleep restrictions are no different than if we said "Flutter Mane and Iron Bundle are broken in OU, so let's nerf their base Special Attack and Speed by 20 so they're not broken anymore". This is the exact same mentality as the Sleep mod. They are both mods made to nerf cetain elements of the game. This is not up for debate. The current Sleep Clause is purely non-sensical and it would never, ever happen today. Finch would be crucified on the spot if Sleep mod was implemented today, you'd see riots on twitter and content creators on Youtube would spell the end of Smogon. But for some reason, because it's been there for a decade, it's... ok?
Worse, because the Sleep mod isn't questioned, every debate, every argument, whether you're conscious of it or not, are based off of a modded version of Sleep which does not reflect the actual game. Now, you could say "just make the move unclickable" instead of letting the option open but disablng the status. It is theoretically a better way of doing it, and we are getting closer to a complex ban status rather than a literal mod of the game, but then it's still a complex ban at best which we try to avoid. Oh and it's still technically a mod because the move would still be clickable in-game but not on simulator. We could go on and talk about the health bar mod, but...
I'll keep this post short so I'll go straight to the conclusion. My proposal is that we simply delete the Sleep Clause Mod and Sleep Clause (which are technically 2 separate things). That's it. Nerfing a status with a game mod on top of a complex ban is against modern tiering policy, cartridge mechanics... everything, really. After deleting the clause will people spam fast Hypnosis and Spore? Definitely yes. Will it be uncompetitive? Who knows, we have yet to play a non-modded version of the game.