Race, I believe the concept of what you are trying to achieve holds merit, however, it also holds a huge drawback.

Not all fish when taking a bait swim away from the shore, several will swim in toward the beach. If the trace is secured to, or through, the weight, as with a standard running trace, or a similar style rig, this take will still register. You will still see the take on the rod tip, or it can also drag the weight toward the shore (not wire grip weights) and give you a characteristic 'slack line' take.

By allowing your trace to move freely back up the line unimpeded, you will not detect a slack line bite, which in turn could cost you many missed fish.

I used to be quite successful in the match fishing scene in the UK. In those days the humble flounder was the main quarry as they were plentiful, sadly not now. With flounder, it wasn't common practice to get a bite that was noticeable on the rod tip, but a slack line take was common and unmistakable.

If you can see this may be an issue for the specie of fish you target, you could always consider putting a stop above the weight, but this would have to be outside of the top eye when casting. I have mentioned many times on this site, I love fishing light, I only use wire grip leads when I absolutely have to. When using a small three ounce sinker (my favourite) it is not uncommon for either a gurnard or a Kahawhai to slack line me. I would miss those takes if the fish could swim happily inshore, sliding the trace up the line without me knowing.

You have the basics of a good idea, but may take a little refining.