EDIT: The actual paper's [2] title and abstract reads "Boosting Oxygenation During Acute Respiratory Failure - A new microparticle-based oxygen-delivery technology has been developed for short-term resuscitation of pulmonary function" [emphasis added].
The real problem is ultimately ventilation, or gas exchange at the alveoli. When it's impaired, both oxygenation and removal of carbon dioxide are affected. One result is respiratory acidosis. There is some literature[1] indicating the body can tolerate such acidosis better in the absence of hypoxemia so the cited idea may have merit as a stopgap measure, but I'm not sure how effective this scheme would be in near or complete absence of ventilation - like the example cited where the little girl's lungs are full of blood.
[1] - Acute Respiratory Distress Syndrome: Adjuncts to Lung-Protective Ventilation; http://www.medscape.com/viewarticle/410886_2
[2] - http://stm.sciencemag.org/content/4/140/140fs21.abstract?sid...