I do tend to think it'd burn up real fast. There's a great deal of power provided by the blades and the brakes would frequently be on. There would be a lot of heat...
I'm sure it could work, but I expect it would be high maintenance and catastrophic if the it wore out before you maintained it.
a basic furling system has much better odds, and I think if you're going to the trouble of flyball weights and springs etc... then variable pitch makes a lot more sense.
Neat drawings though and good discussion - if folks didn't throw this stuff out every now and then it'd never get discussed. There are surely reasons you don't see folks using this system though.