I read your scheme, but I honestly don't understand the utility it provides? It only works if all N players trust all other players. If one of the players works for the house not only can they see all cards, he can dictate the outcome of the shuffle. If you already trust all the players in the game, it's probably extremely unlikely that you are worried about the house playing favorites..
You're talking about super-users or "God mode" players. That's a problem with all poker sites. My scheme does not address that specifically. The shuffle is still going to be very difficult to dictate as it would require several "tries" to get the preferred cards in the least amount of time, by the time the players send their committed client seeds. This can be minimized or negated by the dealer first accepting only the hash of the client seed, until all players have committed, then accepting all the client seeds, then shuffling quickly, then dealing.
Although, in practice, this can all be done in under a second.
The scheme is not about trusting the other players, it's about knowing for sure that the deal or shuffle, with a certain level of confidence, is fair or provably fair, and not just because the site said so. The usual problems that plague poker sites will be dealt with differently.
I mean, where would you rather play? In a provably fair game? Or in a probably fair game? (investors and house not included.)
If the house cheats, they will be discovered eventually (Absolute Poker and Ultimate Bet, for example.)