This is great, I just want to throw out that MTG Online has "Penny Dreadful" as a format:
Penny Dreadful is an unofficial Magic Online budget format where the legality rules include only cards that cost 0.02 ticket - roughly one penny.
I like your idea a lot! I would certainly play this a ton.
I think a draft event like this would be really fun actually. I would make the trip into my LGS to do this if they offered it lol. I just like how level the playing field is and how fun those games would get. You'd play with cards never even considered before and have to make them work somehow.