I played around with this a bit yesterday. I have a couple of issues with it, honestly. For one, it's only going to create a new third party candidate, and won't do anything to address why TPC's can't possibly compete. Rather than creating a new mechanism for choosing one, we should be working to make third parties viable for a change.
The other thing is that the way the questions are (as of right now) phrased isn't going to accomplish much. As I see it, the questions all have a common sense answer that everybody will agree with. If every question has an obvious answer that get's 75% of the votes, then what's the point?
I do think that, eventually, it'll start to get polarized. But then we'll be right back where we started. They won't be called democrat or republican, but you'll wind up with one of each vying for this nomination anyway.
I'm all for anything that might help matters, so I'll certainly follow this to see what happens, but I don't have much hope that it'll accomplish anything.