An extension wouldn't let us define a custom protocol. We get more freedom this way. FWIW, our meta goal is to successfully demonstrate with Beaker, then approach standards bodies.
How easy is it to publish a site that is backwards compatible with existing browsers? I can't foresee a project like this gaining critical mass if it doesn't have seamless backwards compatibility with the traditional web.
Opera used to provide something that behaved something like this from the user's point of view. It never got much attention though and was eventually dropped.
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