This is not functionally different than PayPal, a credit card, or anything else.
It is different, because the cost of mediation increases the transaction cost, whereas in Bitcoin there is no mediation. Are you aware of the chargeback fees imposed by Paypal?
Why its stupid? It addreses vote tampering which is known in any election (fraud/cheating) although there's no country uses it for national election yet.
It's not necessarily foolish, but the majority of people wouldn't place their trust in it, which seems quite reasonable. I am not sure if I would prefer it over the traditional voting system.