The growth of the log is indeed a weak point that could be improved by regularly merging entries. Missing entries are easily recognizable because a consecutive index is used. The checksums on the previous entry should improve data consistency.
The point that CRDTs themselves already contain all the information required for an update is absolutely correct. I have been working on this protocol for some time and one objective was the reproducibility of the individual changes fro accountability reasons. But this may not be necessary for all applications and could possibly be achieved in other ways. Thank you for pointing this out, I will reconsider the concept in this respect!