It may encourage fighters to fight at their natural weights. A guy who is 160lbs would in theory fight a guy who is also 160lbs come fight night. It's unlikely there would be big weight differences between the fighters.

It would discourage fighters from cutting too much weight and encourge fighters to fight at a weight in which they are comfortable. Good plan i say.

I fail to see how they will get people killed. Only an idiot would turn up at a weigh in severley dehydrated and gaunt if he was fighting in only a few hours. He would turn up practically in his fighting condition - minus his pre-fight meal. Great plan.