Ahh, the important point is that you only meant apply the formula you posted to your value hands with >50% equity and then balance each betsize with an appropriate amount of 0% bluffs. You skipped that explanation
One issue with that is that you may have a lot of hands with >0% and <50% equity, they can't be bet for value but also can't be used as bluffs for balancing the other hands, at least not without adjusting the formula. (This is important if you run out of 0% bluffs.)
Also, as you mentioned, this definitely doesn't work when raises are allowed. (Card removal is also an issue, but not nearly as bad as raising.)