It's complicated, and people don't seem to be willing (or able) to think it through.  It's a shame though, because it's an interesting idea..

The worry I have under this scheme is the network.  Miners are going to want to "advertise" their blocks to as many clients as possible to up their changes of winning the election. They might also create other blocks and advertise them too hoping they'll take hold.. I could see a feedback loop ambitious enough to try to split the internet.. Then you might end up with two chains for a bit longer...

It's a very interesting idea though, and it's really possible (likely) that I'm not really understanding it correctly.. I think that's why you've got people reacting with their gut instinct instead of logic.  Their guts tell them that whenever you try to take the cost out of something valuable you've got a problem...

I think you should take a page from Satoshi's book and back it up with code.... If there's a way prevent *everyone* from trying to enter the lottery 8 trillion times, you might have something there..