The Human Target
Adventurer
I like the general idea but I think it would work best when combined with other ideas for getting some of the mechanics out of the way. For example, getting daily powers back after a 6 hour rest almost forces a DM to put a bunch of encounters in one day. Wandering monsters while traveling are either obscenely difficult (if designed such that the PCs have to use all their dailies to survive) or laughably easy (if the PCs use their dailies "knowing" that nothing more is likely to attack them that day). I like the idea of limiting dailies based on level - you can use any daily power twice per level but only once per encounter.
Another option is that you get one daily power (and some surges) back per milestone you reach, with the restriction that you can't get the same daily back twice in a row. This method would have no mechanical benefits to an extended rest. Figuring out surges is a little more complicated because not everyone has the same amount so their "recharge" rate would vary from PC to PC.
Final thought from the article: Prince Humperdink was the bad guy...let the Ogre have him.
I agree the extended rest scenario makes random encounters wonky in regards to dailies. My problem with linking it to level though is that different groups prefer different leveling speeds. So if anyone uses non-standard XP systems it throws a wrench into that idea IMO.
Milestone linked dailies are cool.
We've just been using the "you need x many encounters before you can extended rest variant."