This is far from a new idea, and is called the "hidden-variable theory" [1]. In fact, it has been mathematically proven that locality and hidden variables are fundamentally incompatible in the context of quantum mechanics.
I'd say this resolves the hidden variable and locality conflict beautifully, by changing the concept of locality to something much simpler than the infinite continuum. And it is also somewhat similar to ER=EPR [2] hypothesis Susskind talks about. But unfortunately it is only a vague idea so far.
[1] https://blog.stephenwolfram.com/2015/12/what-is-spacetime-re...