"Users will be limited in the number of people they can and will follow"
Users may or may not be limited in the number of people they will follow but they can't be limited in the number of people they can follow. The information is on the blockchain and if the steemit client doesn't support the full range of following options that users want then another client will.
I also don't necessarily agree that content will be found because it is posted by a followed feed, especially not for viral content. That is almost the definition of it.
Overall I think this approach is poorly thought out with respect to sybil attacks and will incentivize spamming of candidate viral content on multiple accounts where it more difficult to Ignore.