I like it. Especially if it helps BitShares run more efficiently. And since shorting is all about managing collateral anyway now (BTS2.0), then conceptually, nothing has actually changed.
All I need to do to short a smart coin is borrow some then sell it on the market.
You make the shorting process a 2 step process, which is what it is supposed to be in real life, however, with the advent of Naked Shorting, nobody sources the actual security anymore. This brings us all back to the Austrian Economic roots of non-fractional reserve securities trade.
Basic, simple, elegant, intuitive, easy to comprehend, and easier to teach.