While i love your idea, (and am glad you found the context to show your project off again. i read the original post), i do have two nitpicks.
You said it downloads the entire site when i open a site. Now, this is completely fine for normal text-based blogs, but what if it's an image heavy site? Like theChive? Wouldn't i end up storing several gigabits (possibly terrabytes) of data for that site?
Secondly, if somehow we extend the concept to dynamic content (don't ask me how) wouldn't it effectively mean each of us running a server and hosting it on that?
Maybe your idea can be implemented on the server level instead of the client level... like proxy servers doing what you want the clients to do and thus the content would be all over the internet instead of a few specific servers. (not saying that's a good idea btw)