The idea that cars have to drive around a certain area to get access to that area isn't new. The new thing or at least the good thing about it is that it adresses the transition problem. It allows for a small scale start that can spread out, and it will have the effect that people can experience the effect of mass cycling in a small area. It's not hard to sell the idea of cycling infrastructure to cyclists, but other people will probably have to experience themselves how much nicer it makes a city before they get on board.

It also allows for relatively autonomous development, as lots of car drivers no longer see the point in taking the car and people who try biking find it pleasant, the main roads between the 9 block blocks will get busier with cyclists while less cars get in their way.

So it adresses the 2 main problems, the transition and selling the idea to others than cyclists. Also a lot of Western cities were designed or (partly) redesigned in the 2nd half of the 19th century fashion with a regular pattern of blocks and mostly perpendicular roads. This is really an idea that could be sold to city councils and citizens and gain momentum.