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Am I understanding this correctly? The layers do not combine their inputs. Equation (2)

x_l = H_l([x_0, x_1, . . . , x_l−1])

Could be re-written: x_l = [H_l(x_0), H_l(x_1), . . . , H_l(x_l−1)]

No, inputs to each layer are concatenated before being passed through H.
Seems promising and easy to use in practice.