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That's a great idea! I can see it working on a routed digital track too, we're already mounting the LED recievers in the track, why not put them in the slot?

It certainly works on routed tracks, it's had lots of testing on them. You can see how the horizontal part is extended further back than normal, that's to stop loose parts of the braid crossing from one side to the other and shorting out the digital power supply, there's also the way the braids are threaded to make double contacts, all to make racing more reliable.

Perhaps its best feature is that you can retro-fit digital chips to an old car without drilling the chassis for the LED. And as these older cars don't have magnets it doesn't matter if you drift sideways over the lane-change, it still works.