This is a clever solution which does solve some of the issues originally posed by touched/untouched events:
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It’s accurate! No need to worry about untouched firing before untouched now, and modifications of the character within a zone won’t cause any issues as you mentioned.
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It’s relatively simple to setup.
There are still limitations which may dissuade its use:
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You’re solely limited to the client. This method can’t be implemented on the server, therefore server-side implementations of features such as safe zones are impossible to achieve (without networking, which adds additional complexity).
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Other players will still be triggering this event frequently, which is a huge issue as explained in this discussion.
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It’s not as easy to setup with complex geometries. You’ll either be forced to convert zones into meshes/unions, or setup additional touched events which become incrementally inefficient.