I'm not a fan of a points deduction for the fans behaviour. The club have discouraged the fans using flares. You would think the 5 year ban for the individuals is enough to stop it, but if harsher penalties are required, I'd prefer the fans be banned from attending away matches, and if there's still problems, playing home matches behind closed doors. It's be a shame if the team with the best record didn't win the league due to the behaviour of a small group of fans.
I don't mind the club being fined as a punishment for not controlling their fans, but to dock points does ruin the integrity of the competition.