Yeah, it's not a solution. It simply seeks to make it more obscure but an attacker would certainly still be able to pull off the attack.
From what is on that blog, there's still a full keyschedule in memory at this time. This is how we reconstruct the key, the redundant information in memory; it's not just the 128/256 bit key itself. For older methods, they needed the actual specific key bits but we don't need them because we recreate them.
Basically, the CPU is acting as a ghetto crypto co-processer. Emphasis on ghetto. It's a nice suggestion but the devil is in the details and sadly the details in this case aren't really up to snuff. It's a bogus solution.
C'est magnifique, mais ce n'est pas l'Informatique. -- Bosquet [on seeing the IBM 4341]