If the housing rotated (by a rudder?) to face the wind, I'm certain it would work well.
I think the application for one of these is a city rooftop where High-RPM's disallow HAWT's, and any VAWT that you are allowed is limited in size. I think in some juristictions, a low-RPM high-torque VAWT might be allowed, especially if the housing was designated as a failure containment. I can also envision shutters at the entrance for high winds, or speed adjustment. Plus meybe an endangered-bird screen?
Added complexity and cost, but better than not being allowed anything at all in some towns. -Ron
"We were so poor we got married for the rice, I took my kids to the pet store and told em it was a zoo, I drove em through the car wash and said it was the new Aquaman Adventure..." -Rodney Dangerfield