For me this looks like he is trying to work around fundamentally broken model of ACLs written to file system that UNIX uses. The only way to get this right and not have mountains of complexity is to use object-capability system instead of ACL; but this would not be UNIX anymore.
Also the idea of erasing your LUKS key is kinda pointless since your RAM will also contain most of your recently opened files in page cache - so if you can read your LUKS key from RAM you can also read some of your files from RAM. If you want your files to be really secure just shut down the computer or suspend to disk ("hibernate") with encryption of the suspend file - this would be no different for what he proposes (since no user program can run anyway) and also better for CO2 emissions...