You are still receiving feedback and more-so than a traditional grading system you have a reason to understand what went wrong since revisions to your work are

You are still receiving feedback and more-so than a traditional grading system you have a reason to understand what went wrong since revisions to your work are reflected in the final grade. I don't see any reason this system doesn't work in the face of objective criteria. The professor is still determining your level of understanding and aptitude, they are just doing it across the entire course rather than in a series of small and irreversible steps.