I havn't read the link yet, but this is a far from new concept, They were using this system in teh 1970's in F1 cars. It works really well, however there is an inherent problem. It is not manufacturable. It requires very high tollerances to work properly. They type of tollerance that is not practically achievable with current manufacturing techniques. Ralph Sarrich had the same problem with his rotary engine. In the lab it worked, but it couldn't be manufactured in bulk.
I am sure if you had the development budget of an F1 team, you could make one for a 1UZ. But then again if you did, you wouldn't be putting it in an old Toyota.