It seems equivalent without loss of valuable properties to the conflict/rebase approach described here[0], and while it probably could be adapted to a p2p setting, the space requirements seem like they would not scale as well as the CRDT-based approaches like RGASplit[1].
What are your thoughts on competing algorithms?
[0]: http://marijnhaverbeke.nl/blog/collaborative-editing.html
[1]: https://github.com/atom/teletype-crdt