You seem to have discovered the mppt controller. Yes it does work and recently such things have just about become commercially available.
Don't worry about the point below cut in, there is no power there and at best if you reduce the cut in speed you will only see a few watts. You are absolutely correct about the rest and it will give a much increased performance if you can keep the prop at constant tsr.
Read through this board, someone is testing the Classic controller with a 10ft axial flux mill and getting very good results. Can't think of his name at present.
Flux