Uh, isn't this just the Hippo? In any case I think the Hippo is a playable setup for white, but yes, Black is being too passive here. The Hippo is intended to give up space in exchange for a solid position, and Black is too slow to take advantage of that in your line.
Pincer Attack

It's basically a Hippo structure.
Look at Nezhmetdinov-Ujtelky for an interesting example of it (from the black side).

Did you get this from Jrobi? lol
Yes I did, I didn't see anyone post a topic, so I did.

First - it's great to see a thread on this here - looking forward to all the feedback.
Okay a couple of points:
1. The Pincer Attack as white is fundamentaly different than the Hippo defence employed by black. Key differences of course are the extra tempo that white enjoys with the first move, leading to much more sharp positions that black has to tread very carefully with, especially when you factor in the capability to thrust the C and F pawn forward to launch a flank initiative. That being said, the Pincer Attack does not strive for initial advantage, but rather flexibility and attacking capability later on in the game.
On the same token, however, with perfect play black can equalize any opening, and if that wasn't the case then whatever opening can't be equalized would be played exclusively at the top levels. So while it leads to only equality in the first several moves, it will definitely be the strength of the players on either side of the board that determines the outcome.
2. Thanks for posting that game played by very strong players - I will be looking that over in detail and using it along with other games I have been collecting to create the opening system. I see a lot of potential here, in very much unexplored waters.
3. If anyone is interested in testing this out and helping to develop the opening system please email me at jrobichess@gmail.com - the first focus will be on line development from B3, D3, E3, and G3 respectively to determine the best way for white to achieve the formation of it's pieces without giving black and advantage out of the opening. Then the focus will move to transpositions from those lines.
4. Tryfon Gavriel defeated a GM in blitz play today using the Pincer formation. You can watch that video here: http://www.youtube.com/watch?v=ACMTf8Joqf0
Once again - I was very happy to see this thread and looking forward to the dialog that results.
jrobi

jrobi: I suppose the main question I have about your stated difference between this and the Hippo is: "does the extra tempo really change that much for White, considering he isn't using it to create an opening initiative?"
Other than that, welcome (back?) to the site.
Yeah, I saw that video. I'm looking forward for the lines to be developed. That'll be a real Christmas present. I'll use it in my club games since I will know the lines very well. I have found that white often needs to play h3 to present the bishop and queen creating a battery and then placing a powerful attacking Queen on h3.

Absolutely Absurd - the tempo is a big difference between the use of the structure as white versus black. With the extra move white can reach the position one move quicker, which changes the shape and nature of the positions that result. For example, The Bird's Opening vs. The Dutch Defence in terms of positional play that follow out of the opening.
Tineslabbinck: Very strong line idea from black! I think the best thing for white to do would not be to castle but play H3. Alternatively, however, if black employs this move order it might be time to transpose into a King's Indian Attack structure instead of pressing into the Pincer Attack.
For example:
I think the transposition would be a better option for white if black decides on the move order you list.

Timeslabbinck - I was inspired to make a video exploring your line and included a lot more ideas than the transposition above:
http://www.youtube.com/watch?v=nPDHqhA5HWg
Your idea for the black move order is very good, and I have spent already a few hours going over the possibilities. Looking forward to seeing any ideas/thoughts you or anyone else has on the possible reactions from white facing that kind of structure.
Would you be willing to try it?