I'm very hopeful that this solution proves workable as I would like to see it used in Freicoin. I will bring it to the attention of our lead programmer maaku and possibly Luke-Jr too. We have long desired a solid PoS system which would allow for a decentralized distribution of the demurrage fee, but we have always been stymied by possible PoW attack vectors that our designs were vulnerable too.
How is demurrage different from inflation? In the case of bitcoin, there is 12% inflation per year that is masked by appreciation. Demurrage would just make the inflation more obvious, but if Bitcoin were to switch to using 'PERCENT OF MONEY SUPPLY' as the basic unit of account then Bitcoin would technically be implementing demurrage. All you are achieving with your coin is to make it more obvious.