This is like coming to a business negotiation with a hand granade. "If I suspect you cheat we're both gonna die". I mean it could work in practice but it requires careful tuning of the blast radius so to say.
Always when there is an asymmetry there could be some DoS. Like lots of "Bobs" blackmailing Alice since she has more to lose.
I don't know what would be the best use case.. I had in my mind option to offer cheap self-custody to newcomers.
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This is my concern. Bob has too much power. If Bob is richer than Alice and it is worth it to him to put her out of business he can.
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