I watched the video and tried to keep an open mind. You actually make some really good points and in some ways, what you're proposing would simplify things. I'm not a proponent of the the rule change though and think for leagues and most formats where refs aren't present, all ball fouls isn't ideal.
I played in Denver's straight pool league out of Felt for a few years, which plays by all ball fouls. Tom Ross (friend of yours I believe) was adamant at the time that all ball fouls wasn't great, specifically because it's difficult to enforce without a ref present. I'm not trying to speak for him, but that's what I'm remembering his issue to be with it. I tend to agree about the ref piece, especially in regards to shirt fouls. At the time, I kind of liked it and for that league. Sometimes when setting your bridge hand, you lightly feather another ball with your hand or finger and your opponent doesn't see it and you're forced to have a moment of truth with yourself. It's really difficult to call a foul on yourself when on a run of say 20 or more, but I've done it. At first it sucks, but once in your chair, it's nice to have a feeling of honesty and integrity. The difference between that league and most is for that one, the average age of people in the league (at the time, this is around 10 years ago) was like 50-60 and the bulk of the members had been in the league for many years. Everyone knows everyone, you schedule matches with each other once a week, many are friends, etc. There weren't a whole lot of disagreements. Straight pool is an old timers game as well, that has it's own unique set of rules.
Ultimately, as others have said, I'm really hung up on things like shirt/hair fouls where many times the shooter won't be aware and it puts their opponent in a very uncomfortable position. I know you mentioned in your video you can let it go sometimes, but I don't think you can. You also showed examples of how to call it out and the person shooting maybe at first disagreeing, but then agreeing. In reality, I think the person being called out is likely to be defensive and continue to stay defensive no matter what, leaving both people unhappy, even if the person that saw the foul, calling the foul, lets it go.
I do think for professional types of events with refs present it makes sense. For example, I think it works well at the Mosconi cup.
