That sounds like it would end up being a proportional reward method, yes?
I was thinking of it as being PPLNS like the current p2pool, but with the option for a larger number of shares in the LNS window than the 8640 of p2pool. However, the algorithm used to determine the rewards per miner or per share is partially independent of the share tree data structure, so it should be possible to make many different types of p2pool clones with different reward algorithms.