Hey, cool concept! I think the crux here, as the article states, is that enough potential routing points be available, and this will require a significant amount of buy-in (philosophical, not financial) by entities that control the infrastructure. The anonymity promised by this routing method may be a two-edged sword, however. I can foresee that monitoring of traffic for purposes of infrastructure improvement would be dealt a severe blow, with a possible consequence being that upgrades are postponed or applied to the wrong segments.

One thing I think I don't like, though, is that it seems the system requires something like a SOCKS client. I would prefer seeing something along the lines of the protocol being used solely outside of local network environments, so perhaps an implementation for firewalls and routers that "onionize" the packets as they first hit the internet would be better.