Hmm, this make work then and not kill off too much of set theory. You may want to talk to a professional set theorist or logician about this (my specialty is number theory so all I can do is glance at this and say that it looks plausible). The only remaining issue then becomes that I'm not sure that this is inherently better than standard set theory. In particular, this approach seems much less counterintuitive than ZFC. But that may be due to the fact that I'm more used to working with ZF-like objects.