Yes, this is exactly what sprung to mind when I read this proposal. In my opinion, the biggest disadvantage - just as in Monero - is the need for transaction scanning.

There were around 100 million Bitcoin transactions in 2021 [1], while Monero only had around 5 million transactions in the same time [2] - a factor of 20 is not insignificant I'd say, especially when using an SPV wallet. If you open it after a few weeks or months, it will have to churn through a ton of computation if such a scheme were introduced in Bitcoin.


[1] https://blockchair.com/bitcoin/charts/total-transaction-count
[2]