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I’m not sure there is much that can or should be done by NATO to deter Russia militarily, but we definitely shouldn’t just hand Putin what he wants - he’ll only be back for more, all across Eastern Europe. I don’t think Ukraine should be admitted to NATO, but that definitely shouldn’t be offered in appeasement just now.
Invasion isn’t a good outcome for Putin either. The best outcome all round is that he deescalates, and persuades himself that having held everyone’s attention for a few weeks is enough of a win.
If you read Will's link you will see that Ukraine has done far worse than Russia since 1990, and the weakness of Ukrainian growth and ineffectiveness of Ukrainian politics is what enables Putin's position vis-a-vis Ukraine. I don't really see an analysis that supports an argument that Putin wants to invade in case Ukraine out performs Russia economically.
To quote the article:
On @rodan s point, at present there aren't really any effective deterrents other than the threat of military counter action. Who is willing to take that?