My tendency is towards preferring IRV to this because IRV has more of a proven track record in other countries, but yes, this would be a massive improvement over the current system.
Do you agree with my problems with it, though? This system would communicate more information about each voter's preferences, which is why I think it's superior.
I think that could be argued either way; this system is better at communicating which candidates a voter could actually tolerate having in office and which they couldn't, but IRV has more granularity regarding how
much a voter likes or dislikes a candidate relative to other candidates.