Yeah, it's not a solution. It simply seeks to make it more obscure but an attacker would certainly still be able to pull off the attack.
From what is on that blog, there's still a full keyschedule in memory at this time. This is how we reconstruct the key, the redundant information in memory; it's not just the 128/256 bit key itself. For older methods, they needed the actual specific key bits but we don't need them because we recreate them.
Basically, the CPU is acting as a ghetto crypto co-processer. Emphasis on ghetto. It's a nice suggestion but the devil is in the details and sadly the details in this case aren't really up to snuff. It's a bogus solution.
When is the last time you've looked at this? The Nanostations, which are atheros based can run OpenWRT, DDWrt, etc. The big thing I see here is that with OSS HAL, maybe adhoc support on atheros will get better. Meraki, FON, and the ACCTON (openmesh.com) routers are all atheros too.
Little known fact about Middle Earth: The Hobbits had a very sophisticated computer network! It was a Tolkien Ring...