Yes, but afaik this system has never been tested. If the system is effective that should be demonstrated by putting it in use. Without a demonstration it seems like cheap talk to me.

Also, a voting system that assigned votes in proportion to bitcoin holdings would be much better. Why should the interests of people with no wealth be dramatically overrepresented in the voting process.
Of course people can use their money to game the process (creating additional nodes), but this is an exceptionally cumbersome way of giving the wealthy a voice.