I like this. To me it does several good things.
1. It would force the UFC to declare number one contenders fights. They usually just throw them out there unofficially, but you can put just as much excitement around a number 1 contender as a title fight.
2. Unlike some, I think it would favor finishers over points fighters. Someone that lays and prays or dances around with little to no attempt to finish would have 10 more minutes to get dropped by someone who wants to end the fight. Prime example, Bisping VS. Leben... yes I know of Chris's bullshit, but think about it. Bisping flat out admitted he was out to outpoint Leben, who was clearly trying to end that fight... and I think could have.
3. I think every pay per view should have a five rounder on it. Which is why I've always pushed for a title fight on every pay per view, but this would serve just as well.
As far as the last paragraph, I hope they envoke this replay rule. A great example of that is Sodallah/Hendricks. They should have removed Mirgliblahblah and started that fight over from the time it stopped.
Good stuff, I hope it all goes through