I'm not sure I buy this whole "identify as a cyclist" thing...I mean, is the scenario that a driver sees a cyclists flashing red taillight and, because they don't ID it as a bicycle, decide it's alright to go ahead and hit it? I haven't looked at the statistics coming out of nighttime, from-behind collisions between bikes and cars, but I have a hard time imagining a driver saying, "Yeah, I saw the light, but I didn't know what it was and couldn't tell how far away or fast it was moving, so I hit it." What am I missing?

Needless to say, I think your idea is overkill, and question whether the reflective material would bounce any light back towards a car anyway given the light source being on your rack.