The proposal sounds completely stupid, and I think they worded it as poorly as possible, but it's not actually a terrible idea. They just made it much more complicated with the score resetting to zero, and then bringing the scores back and adding them up...
But in reality, you're just getting rewarded for winning each quarter + winning the game.
It's actually the old Continental Basketball Association 7 point system + Elam Ending (as fwf pointed out) with a Kobe twist.
So in the old CBA, during each game, seven points were awarded - three for winning the game, and one point for each quarter in which a team outscored their opponent. Team standings were determined by the number of points, rather than win-loss percentage.
I've seen the idea of a CBA 7 point system floated around over the years to try to make the NBA more competitive. The idea is to keep a team playing hard in the 4Q even in a blowout, because even if you're down 30 going into the 4th, you can still earn a point by outscoring your opponent in that quarter.
Personally, I'd be open to the NBA trying out the old CBA 7 point system in the regular season. Less open to them implementing the Elam Ending though.