I would argue that it would be valuable to have finer-grained confirmations for the sake of speed. In a point-of-sale situation, for example, being able to confirm a small transaction quickly is very important.
0.01 of a confirmation on your network is actually worse than 0 confirmations on the Bitcoin network. With 0 confirmations you are protected somewhat by the TCP-level network, but anyone can reverse a transaction with 0.01 confirmation, overruling the TCP-level network.
Can you elaborate on how it hurts scalability? Isn't it all the same data being passed around?
It's a lot more data that lightweight clients will have to download. There's an 80-byte header per block that clients need. If this was required for every transaction, then lightweight clients would have to download about 17MB more data currently. This will become a lot more significant as the number of transactions per block increases. Also, if you have multiple "previous block" hashes in each transaction, you'll need headers that are much larger than 80 bytes. Normal clients will quickly lose the ability to send transactions.