IMHO, if the tech industry wants to live up to its narrative of meritocracy, this is one obvious improvement over existing processes. No, it won't take care of pipeline problems; no, it won't solve the "tipping point" problem (i.e. where candidates of underrepresented groups are dissuaded by a lack of pre-existing representation, making it very hard to go from zero to one, so to speak). That said, we're uniquely positioned as an industry to do this - technical interviews are similar to auditions in that they hinge on skill-based performance - so why not? It can't be any less arbitrary than asking random questions about manhole covers and light bulbs.
I'd posit that even the "show your thinking process" parts could be done in this way - e.g. via text chat, or inline comments, or maybe even using voice obfuscation and/or neutral avatars.