Initial Impression --
The Good - Thin blocks, Weak Blocks (Also Found in Core's roadmap)
The Bad - Advocating for SPV mining , which is a problem exacerbated by their Validate Once proposal, and pushing off the many benefits of Segwit till the end of the year
The Ugly - 3rd/4th Q 2016 adaptive rule for a block size limit that heavily incentivizes those with better bandwidth which would drive miners from China to locations with better bandwidth and make many home mining operations obsolete because they cannot compete with the propagation times with larger operations who can afford better uplinks. There is no consideration for centralization concerns or the costs of nodes with this proposal which makes it a non-starter from the get go IMHO.
Ugly? UGLY?? This is exactly what we need, something that neutralizes the Chinese electricity and labor cost advantage. Without some way of doing that, we cannot regain censorship resistance. The fact that does so while increasing network performance is just a bonus.
The problem i see obviously is that Chinese miners will be reluctant to adopt it. But if they don't adopt it or something like it, I don't see much future for Bitcoin. Either it will stagnate or it will grow to the point where it becomes a threat to the PRC and they will take over the network.
This proposal is the only ray of hope I see for overcoming the dual problems of scaling and miner concentration.