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I agree that their current business model wouldn't work, but their current model only has limited value anyway. I would say it changes the best possible business model for Clear to choose to operate more like Delta SkyPriority where there is a whole separate line from beginning of security to the end, not just the first step of the line, which is what Clear does today.
Hmm I feel like it would be difficult for a private company to get approved to take over the TSAs job. It would create a conflict of interest- Clear would want to get people through as quick as possible for as cheap as possible.
You misunderstand. It would still be TSA staff, however they would be dedicated to Clear members. Who would pay for it would likely be Clear.
Delta does this already with their SkyPriority service. It is a separate security line specifically for Delta First class (or Skypriority member) passengers. No amount of Clear, TSA Pre will get you into that dedicated line.