I'm not going to go into it on a point by point basis - but all you've managed to do is swap the 'proof of work' system, which prevents gaming of the system, with a system that gives control to whoever can muster the largest resources in terms of IP addresses and virtual nodes.
Having scrapped the whole 'block' system - this 'arms race' would happen at a rapid rate, and even if there were a few competing botnets, control of the network would oscillate between them.
In short - your proposal sounds like a disaster, and suggests you've missed the point of the block system and proof-of-work.