The experiment is interesting; that's for sure. However, whether it improves or weakens cannot really be judged properly considering the story written for JL #1 was done so in a specific way. What if, for example, Watchmen was reworked to where it had a ton of splash pages. Would that have made the story better, worse, or the same? Truth is one can never know, because that wasn't the style Moore and Gibbons did.
I dunno, in a way it did--if you use the old definition of splash as a "large panel," versus a full page (and usually full bleed) panel.
From #1: Rorschach's entrance, Dreiberg sitting lonely and sad next to his Nite Owl costume, Ozymandias looking out the window into the rain with his goofy toys on his desk, and the first appearance of Dr. Manhattan--all 2/3 page splashes. And the squid scene from #12 is four full-page splash pages in a row, iirc.
Watchmen succeeds in being a dense experience not because it eschews large panels entirely, but rather through 1)the careful choice to use these images, and the use of them as integral parts of the narrative; 2)filling them with detail that informed character; and 3)otherwise using panels that took up more than 1/9 of the page sparingly and for just cause.
Point 3 seems a little contradictory, but lemme explain--outside of the splash pages, Moore and Gibbons used the 1/3 page panels or even 2/9 page panels much less often than the densest creators use today. 1/4 seems to be relatively standard nowadays for the kind of moments captured in Watchmen's nine-panel grid. Thanks Warren Ellis! You ass!
So even with the (not infrequent) use of 2/3's, Watchmen still fits a lot in by doing what's done in 1/4's today in 1/9's.
Look at, say, Mahmud Asrar's Supergirl, which I found to be an egregiously decompressed book, averaging fewer than 4 panels a page. This is something of a grossly unfair comparison, however.
P.S.: all that said, "31 panel page" is everything wrong with George Perez summed up in three words. I love George Perez, you love George Perez, we all love George Perez, but sometimes he's really hard to follow.
Also, if story is the thing that you appreciate more in a comic than the art (and there is absolutely nothing wrong with that), reworking the story as done in the link won't fix any problems there might be with the narrative. Pretty much what I think Admiral Young was suggesting.
I like to think of the art and story as inseparable. The words on a page are images, too, after all.
Not having read the whole edited version so far, I can't say it's all like this, but I have to admit that the panel with Vic on the phone with the recruiters confined to a small part of the background is a damned artful revision, positioning their meaningless noise next to the meaningful conversation Vic wishes he was having, giving a far greater impression of the oppression Vic's feeling about the whole situation. I really like that a lot better than giving them their own (and crappy--sorry, Jim Lee) panel to provide a plot point in.
Edit: rest of it is denser, but that's not a quality in itself. The layouts wind up sucking. This isn't a knock on the experiment; I don't think the point was to say "This is actually a better comic" but to demonstrate that the narrative could have been condensed better; presumably a top-down remake of Justice League #1 would have superior layouts.