It's an interesting concept. From the Gm's perspective, it helps weed out willy-nilly roleplayers. That is to say that one needs to want to participate in the RP badly enough that they are willing to face rejection. On the other hand, I like seeing my players come up with their own ideas with my guidelines being the only restriction. I've had good luck in that most of my players have been fairly creative. 

I don't think the system works for every RP, and it does limit the players to choosing only what the GM will allow them. I suppose you could make a light version of the system. You could divide the rolls by RPG classes or their rolls. But this creates other problems. When I recruit for my RP, I genuinely expect 20% of my players to leave just as things start, and another 20% in the months to follow. If I have plans for certain characters, I might not have them once things get going. 

I also don't feel it works for every player. I tend to get excited about the prospect of jumping into a world with a character I created. My story might not work if I was denied a particular archtype, and I would lose interest rather easily. But if someone is more interested in the idea of the RP than actually making a character for it, it's not an issue. 

It can work, but it does require a different approach. I don't think it would work for the type of RPs I like to run.