Well its not the bike, but the driver that has changed. The traffic levels 35 years ago were no where near what they are now in most places. There are more cars on the road, and frankly as the safety of the car gets better I think the drivers get more complacent. Add to that new distractions like text and cell phones and the problem is far far worse.
Now when I started riding, a headlight needed a big 6 volt battery to get half the light for a few hours instead of at least 40. More lights would have meant more batteries. Then such a system would have been totally impractical. That doesn't mean we don't need to consider it now. The op said they were planning to motorize it so speed would be higher for longer than normal.
Now would it be effective??? The answer I come up with is maybe. Some studies have been done with scooters and such that says the distance between the lights can make a big difference in how they are perceived and interpreted by other drivers. Too close together and it can cause confusion. Add to that the fact that this type of system is new and unusual could also add to a wt* factor.
On the plus side is that the lights are flashing and that typically draws attention. Ever notice that most of the most serious warnings that need immediate attention in almost any form of transportation, flash??? Airplanes, cars it doesn't matter. That flashing makes you see it at once. Other lights can be on some time before it gets noticed. Still in an urban environment with heavy traffic and so many lights, these flashing lights could also just blend in with the other lights. Certainly not full proof, but better than nothing.
Should such a system be mandatory? Absolutely NOT!!!. That is a decision the owner should make. Its their backside on the bike.