This will not work as described. I think his design is a good idea, but still does not work.

I build a better harddrive (with 4 kb storage!) over a year ago, imgur link will follow.

Now to the design problem in this HDD: see that all the blocks are blue in the platter? No way to swap each of the bits without magically creating new green blocks. My hdd solves that problem by having BOTH block types available on the platter. But see for yourself:

http://imgur.com/a/8ESMW