Axiom of regularity (foundation). Every non-empty set $X$ has an element $y$ that is disjoint from $X$. In other words, $$\forall X\,\left(X\neq \varnothing \Longrightarrow\exists y\in X\,\left(y\bigcap X = \varnothing\right)\right) \tag{R}$$
What would happen if the axiom of regularity is replaced with the axiom $$\forall Y\,(Y\notin Y),\tag{Nei}$$
i.e. "no set $Y$ can be an element of itself"? Clearly the axiom of foundation implies $(\text{Nei})$. On the other hand, in ZFC the axiom regularity is equivalent to there being no countable descending $\in$-chains of any kind whereas $(\text{Nei})$ says essentially that there are no $\in$-chains of the constant kind. While this is not a proof, I would intuitively assume that $(\text{Nei}) \Longrightarrow (\text R)$ does not hold in general in ZFC. If this is true, one would forfeit some results if $(\text R)$ is replaced by $(\text{Nei})$ already in ZFC. So
- What are some of the more stark consequences of replacing $(\text R)$ with $(\text{Nei})$ in ZFC? In other words, are there important or intuitive/desirable theorems which become unprovable in ZFC – $(\text R)$ + $(\text{Nei})$?
- How about in ZF?
I am especially interested if there are results that are lost which could be described as "intuitive" or "elementary". By browsing through Halmos's Naive set theory, which does not have the axiom of regularity, a newbie like myself would gather that there are no profound consequences for the puropses of elementary set theory. And if the purpose of regularity in elementary set theory is to simplify the proofs of some results (seemingly exclusively of the $x\notin x$ type), it also seems that assuming $\text{(Nei)}$ instead of $\text{(R)}$ would further simplify the situation by virtue of being a more natural axiom in its syntacitc form and intuitive content.
Or is this replacement a bad idea in the long run?