I am just not seeing what real life problem this solves. Can someone help me with this.
There is one major barrier to real smart contracts that does need to be solved. That is the one problem this proposed system does not solve.
That problem is the interface of communication of inputs and statuses from the tangible world to smart contracts (intangible algorithms) residing out in the cloud.
Surprisingly very few legal disputes in the real world are about what the true words are of a disputed contract. They are mostly about facts that are external to the contract and the interpretation of law that is external to the contract. And some are about interpreting ambiguities in the contract.
I will admit that I may suffer the occupational disability of being a lawyer. If it is I am not seeing something that is sitting there right in front of me, I would welcome someone pointing it out.