The GHC approach you describe is also what people do with Results in Rust, and (analogously) with Java's typed exceptions. The idea is that in a multi-layered program, every layer exposes errors that are semantically appropriate for that layer. So (to pick a silly little example) a database call would expose a DatabaseError, not a raw network error if the connection is interrupted. And so on until you get to the level of application-level errors. I think that can work very well.
In the same spirit, I find the article you linked to a bit silly, at least the examples they picked. Following the logic above, there shouldn't even be a "HeadError" exposed anywhere up the call chain. Inventing a complicated mechanism to propagate the error upwards is the opposite of what you want to do; you want elegant ways to handle the problem locally. Having a special singleton HeadError isn't wrong, but I think "Maybe a" would also be a perfectly fine return value for head (as I mentioned in a sibling post, that's what Rust does): head can only "fail" if the list is empty, so there is no actual information in the "error" value.