Felipe V was simply adopting the French salic law, although women could inherit if there were no male heirs descending from him.
Under the Salic law (which applied in France, but never in the Iberian peninsula), the dynasty becomes totally extinct upon the extinction of the legitimate male line descent from the house. What you described is the semi-Salic law (which characterizes a number of German houses).
But regardless of which law he tried to adopt, the fact is that he had no justification for attempting to impose a foreign law onto the new country he was called upon to rule, after initially benefiting from it (the Salic law would have made it impossible for him to inherit the Spanish throne). He owed his kingship to his grandmother (born Infanta Maria Teresa). In nowise was the House of Bourbon per se instituted on the throne.
In this, the situation was comparable to the 1701 Act of Settlement, which settled the British crown upon the "Electress Sophia of Hanover and the heirs of her body, being Protestant". The UK did NOT install the House of Hanover with its rules on the throne (for then, Princess Caroline of Monaco's husband would be the king today). After all, she (and not her husband) was a grandchild of King James VI/I.
The situation in Spain, then, was worlds different from the situation in Luxembourg: now I do accept semi-Salicism there. After all, the 1815 Congress of Vienna gave the grand duchy to the House of Nassau, the rules of which were to regulate the succession there.
It is a law which doesn't exactly do much justice to women, insofar as females belonging to junior male lines of the house have a better chance of succeeding than those belonging to senior (after all, you have to exhaust the entire male line). I would have no problems with this, however, had it already been the national tradition in Spain. But it wasn't: rather, it was male-preferred primogeniture -- at least in Castile.
And the irony of attempting to restrict the succession to the male line, so as to prevent a foreigner from coming to the throne, was that two cadet branches eventually broke off from the Spanish Bourbons -- first, the duchy of Parma, and later, the kingdom of Naples and Siciliy.
If succession had been restricted to the male line, then there was always the possibility that the throne would eventually fall precisely to a foreigner -- e.g. a member of the royal house of Bourbon-Two Sicilies.
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