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Awesome! Glad to see that they are working on this. One consideration I had was application installation. A feature phone would have to install the Java application on the sim card (which is detailed in that pdf), but then what? Do users have to go to a Machankura site to get the application installed? Its obvious that it is less than ideal to get the application from a friend, but some method of hashing the application to verify might mitigate that. Lots of considerations to be had.
Also with this method, users could use not just Machankura, but it would work with anyone's service, so that if Machankura were to be gone, people can still spend their Bitcoin with just one person smart enough to set up a SMS service for their community.
Does the development of this PBST based wallet have a Github repository people might contribute to?
I'm not involved in the project and don't know anything more than what I found in the PDF. They do have a repo, but it has no updates yet for the ledgercard software from which they have created a fork.
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