I don't even have to look at this new scheme to know it won't work. It won't work because it relies on a critical mass, and until it gets that critical mass sites won't switch, and until they do users won't sign up, so there's no critical mass .. your classic chicken and egg problem. No-one is going to pay unless everyone else has to pay. There is nothing to force everyone to move at once. See: history of "penny stamp" email anti-spam ideas.
The form style helps ram these notions home; it's a welcome reality check in situations like these.
(updated to stay on topic)