This just seems silly and insecure. Noone in their right mind would use this for any kind of serious secure communication. Personally I'd wait for someone to remove all the extraneous stuff, make a real protocol definition and make this modular (for example, split the web-interface from the server).
Great idea though, and a nice proof-of-concept, I'd give them that. There might be a real need for something like this when governments shut down or block internet connectivity.