That's why the classic windmill design is so classic: its efficiency scales with the square of the length of the rotors. The energy extracted by a windmill is (very roughly):
wind_speed * 16/27 * 0.8 * π * rotor_length^2
But then the wind speed also increases with height.[2] So the game to design an efficient windmill is to sweep out as much cross-sectional area as possible, as high up in the air as possible, and that's how we get the iconic windmills we have.I don't know anything about anything -- I just read this stuff on Wikipedia. But until a third-party engineer says otherwise, I'm super skeptical that a device like this with minimal high-altitude cross-section is anywhere in the game.
[1] http://en.wikipedia.org/wiki/Betz%27s_law [2] http://en.wikipedia.org/wiki/Wind_profile_power_law