ahhhh... not bad actually, but um...whats holding those magnets in place? glue isnt going to be enough, you will quickly have a lump of magnet embedded in your eye or leg if it does run. doesnt sound pleasant.
anyway, i can see two issues. the face of the magnet has to be just as wide as the stock magnet, that edge passing the stator determines exactly where the pulse does occur. having the key alone in the right place isnt enough. it has to be in a certain spot in regards to the leading edge of the magnet.
also, way too much clearance between stator and magnet. i know the HT is fairly sloppy, and theres no adjustment possible, but normally on adjustable stators you get that distance to about the thickness of a piece of paper. the closer, the better.
neo magnets seem like the way to go but you would need a lathe and mill to do it properly...carve out pockets for the magnets to sit in so theres a decent bit of meat holding them in place. have a look at how they are held in a chainsaw or brushcutter type engine..
they look like standard fridge magnets...not strong at all. you would find stronger magnets in a CD player.
and then theres the issue of magnetic fields in the steel backing piece itself... rather than create a field extending out into space, or one big long bar magnet, you have shorted it out between the magnets. ie, theres a lump of steel producing a continuous circuit from the end of one magnet straight back to itself. what little field you are creating is being wasted. the majority of it runs through the steel.
youve got me tempted to have a go at making one myself now...