This actually sounds darned useful for /home. Right now I have tons of files scattered all over the place that I'm afraid to delete because, who knows, I might need one or two again in the future. With this filesystem I could just go back in time and fetch a file in the rare event that I actually need it again. I'd keep my home dir a lot cleaner.
When the disk is full, it could be put in a maintenance mode where everything is copied as low as possible. This blows away your history, of course, but it clears up fragmentation and recovers unused space.
So... does it work in practice?
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