Yeah, that works and has been for a while. I was talking about non-track based safety systems. You can have balises in specific locations, but you can't have them every few centimeters on your whole network.
I guess I'm confused by why non track -based solutions are necessary? ETCS L2 would gracefully handle a system restart and automatically force a 40kph speed limit until a train traversed the unknown track proving no occupancy, and allowing proceeding trains to go faster. This all works on a track-based system.
Why would you need that many? Trains can keep pretty reasonable track of the distance between two balises using odometers.
There are also other solutions, e.g. LZB uses a phase change of the signal every 100 meters as an additional precision signal.