Completely agree that's what would happen.
The Bombers would play for no points but their points to date would not be awarded to any of the other clubs.
As per the penalties, while I tend to agree with VC in respect that I don't think the players deserve suspensions if they have been deceived, I can't see how they won't be. WADA's rules are very black and white, and if you have taken non approved susbstances, you will be suspended. While no doubt the afl will try and avoid that happening, how can it? If the afl threatens to walk away from or not accept WADA's bans, you can bet the Feds will withdraw all funding from the afl faster than they can blink. So the afl has very little leverage, and I can't see WADA being nice and letting the players off out of the goodness of their heart. The only thing I can see happening is that they want the players to roll over on those who are really responsible for it all, and that those that do will get reduced suspensions in exchange for testimony. But even in that case, I still think the players will get a suspension, just a lesser one.
Under the AFL's drugs code, ASADA (not) WADA) decides conclusively whether an offence has been committed by the players, and recommends penalties, which the AFL and the players, through the CBA, have bound themselves to follow, subject to the right of the players, if they don't like the penalties, to take it to the AFL Tribunal. The Tribunal has power to decide whether to apply the special exemptions reducing penalties from 2 years to 6 months or zero. If WADA thinks the Tribunal has been too soft, it can appeal to the CAS. Any players who are suspended will almost certainly take legal action against suppliers, club, officials.
The AFL has not signed on to the WADA or ASADA rules and guidelines in relation to clubs or officials, and is not bound by them. However, if ASADA recommends penalties on the club or officials, the AFL will be politically/economically bound to apply them, using its general powers and rules, and maybe add some of their own, eg draft penalties and fines. I suspect that if any backdoor dealing has gone on between the parties (which I also suspect it has), it will have been on this aspect - agreement on punishments which ASADA can live with politically, and which the AFL can live with in terms of running the competition. But if Essendon is not on board, it will legally appeal any punishments it can't live with.