Yes, this is the sort of "settlement" of the Civil War I think of as being in proportion to the crime of secession, and also as laying the foundation of a more hopeful future.
I also rarely see it in any AH alt timelines!
One question that comes up is, who will champion such a solution of the problems the South presented? Lincoln was concerned to normalize relations with Southern states as soon as he could; he surely was not interested in ripping up the whole social basis of the Southern ruling classes (though I think he logically should have been). Andrew Johnson would not be on board with it either.
The best scenario would be to somehow persuade Lincoln this was would be the only way to go, and either butterfly away his assassination or establish the policy so firmly and broadly that his successor has to agree to continue it.
I'm afraid I have no idea how to persuade him in advance of Union victories that systematically confiscating the land of all rich secessionists and immediately granting the land proportionately to the former slaves should be standard policy.
I'm a little surprised it wasn't though; not only were the secessionists traitors, the slaves were clearly the people who had done the work of clearing the land and building up the plantation! The argument would be that we not only get rid of traitors, we build up a cadre of supporters (the freedmen) who, in owning their land, have both a stake and means of defending it and their civil rights generally--by immediately removing the old planter class (except those not guilty of secession) and immediately creating new voting citizens (the freedmen)--Lincoln's favored plan of reaccrediting state governments with minimal reform should have been more workable. Provided that these freedmen get to vote for the new state governments and their former masters don't (and for that matter for freedmen to meet voting qualifications, lots of white men who didn't before ought to now qualify, thus the whole basis is more populist) we could expect the new state governments to be both progressive and strongly loyal to the Union.
Nevertheless, though it seems like what he obviously should have been doing, Lincoln did no such thing and a good ATL needs to address why.