Good idea, but is it a matter of "if it would end in a draw after 3, the judges ask for another round"? Otherwise we'll get too many 5 round draws and such. Personally, I'd have rather them gone to a PRIDE format, or at least allowed for it, where you get a 10 minute first round. Anyone who watched PRIDE knows how much of a different fight you get with a 10 minute round!
But, this could be good, only if it doesn't lead to 3 fight PPVs...