I think I like this policy, but quite happy that NZ haven't adopted it. As Blue says, Giteau looks to be one player that has the goods to perhaps play for Wallabies in WC ( I thought leaving him out of 2011 was Deans biggest cock up) , as he looks to be playing pretty good rugby. But anyone thinking it going to make a huge impact on Wallabies is probably mistaken, as players are only released for approved test windows, not for training camps etc etc, so I wouldn't think you would want to bring in anymore than 1 or 2 players for a test. All in all players in Japan would need some hard rugby before stepping into test rugby I think, and sure as hell European clubs are not going to allow players rests before or after tests. Also you would need a selector based in Europe I think.
Anyway don't really blame ARU for trying this as finances dictate how much they can play to hold players!!