Everything you've said here I generally agree with, but I think you wrote this prior to my last comment, so just to note as per my last comment, the reason I favored this over the 3.5 day delay method is ability to respond quicker to a price pump. But there is definitely the tradeoff that you mention in your first paragraph with the worst-case price in last hour term.
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Yeah, I think rather than wondering about different tradeoffs, we should just start with the inverted 3.5 day mechanism. That addresses the fundamental supply imbalance issue. If it then turns out we need something faster to provide more stabilization against short term moves than what people doing short term trading and market making provide, then we can add something else.
Let's start with the proven mechanism and see if it is enough. It think it might be.
(Yes I wrote the above before your last comment.)