Frankly?
It sounds so much like what a scammer would say that I admit I didn't even bother to read all the bullet-points.
-MarkM-
The key point is that I am limiting it to small amount to build reputation. For example, 1 LTC for a corresponding number of BTC. It wouldn't be worth it to scam for such small amounts, but it will build me reputation.
This is what scammers do. Build reputation to scam for larger amounts. We do need a good escrow service but this isn't how to provide it imo.