So... you're saying that you reset to 0 xp at every level up?
It won't be evident early on, the difference between 2 and 3 being only 2000 normally and 3000 your way, but 4 to 5 is normally 10,000 while your way makes it 20,000. By 20 you'll have "spent" 1.33 million XP instead of 190,000, assuming your group makes the long hard grind there.
I don't see this going over with my group. By 20, assuming you don't go into Epic progression with this, they'd be working over 7x as hard for their level. Your treasure reduction doesn't scale either, you've increased the fighting exponentially while reducing the treasure linearly. At 5 you've hit the breakpoint and money actually gets *easier* relative to the character level than in the core rules. By level 7 they'll be doing 3x the fighting for 1.5x the normal treasure.
A scalable guidepoint I picked up from reading PHB II and playing with the charts is that characters should get about 0.9x their XP in gold value. It'll still be tougher playing under your system but you won't see the breakpoint effect.