I never thought it was supposed to be a handicapping system, I thought it
was supposed to be a system for creating an initial board position from
which a typical player would have equal chances of winning regardless of
which side he played.
So I am pointing out that:
1) At best, this sytem merely provides MOTIVATION for creating such a
position. That's kind of like adverising a "method for lifting heavy
objects" and then revealing that the method is to offer a higher wage to
employees who can lift more. You aren't solving the problem, you're
hiring someone else to solve it for you; the actual problem still needs to
be solved by someone at some point.
2) Although this method aligns the player's incentives with the goal in
an idealized case, there are many realistic cases in which the player can
actually gain a larger advantage by strategically UNbalancing the game,
rather than making it as balanced as possible. So you need to carefully
consider your circumstances before employing it, even just as a motivator.