It's not about businesses sharing history it's about preserving a history of the OSM object.
Just because a business is closed doesn't mean that address doesn't exist anymore.
And yes, that is recommended way to handle it, as you can read on https://wiki.openstreetmap.org/wiki/Comparison_of_life_cycle_concepts and https://wiki.openstreetmap.org/wiki/Lifecycle_prefix
Your actions made made this address impossible to search for and route to. If this is unintentional, I'm advising you how to improve your editing. If this is indeed intentional, then it'll be considered as vandalism and your account can be referred to Data Working Ground, which can result in temporary or permanent block.

As for your claim of this being a bad data model, I doubt that somebody with an account that less than 2 years old and made only 3 edits is in any position to judge the nuances of OSM data model. But if you think otherwise, you are welcome to make a proposal to OSMF, DWG and the community at large and offer a better way of handling this.