You understood the proposal correctly.
The only difference is that I don't think in terms of "voter losing money". The algorithm I'm proposing is part tipping, part reward pool allocation. When a voter casts a vote, he will do it knowing he will transfer Steem from his own account to the author account. On top of that, the author will also receive Steem from the reward pool. Whether the voter gets back something via curation reward, or not, is secondary. Think of it as a bonus for discovering good content.
Tipping-only communities are hard to start and almost never work. Reward-pool-only communities are biased, as we can see it right now. Maybe a middle way, in which we combine the best of the two worlds, will work out, who knows?
I do not believe at all tipping communities will work. When it costs money to vote/curate, I don't see people curating. Value is also not in blogging, at least not directly. In the blogging world outside Steemit, blogging is monetised through advertisment, a vlogger can get more when his/her followers group is larger and relevant to the one using the blogger. I see Steemit as a first app using Steem. However Steemit is not helping to make Steem relevant, certainly not with how rewarding is currently implemented and the 'wars' that are going on. For Steem to become a relevant currency rewarding needs to be changed; Bots needs to be killed; More Apps needs to be using Steem (but here is a catch22 situation; although I personally have ideas for some time already for services for which I could use a virtual currency, Steem does not seem to be the right currency as I start to learn a bit how Steem is used today).