As I understand, it utilizes a standard interlaced HAM screen. What are the implications of needing more data per frame?
It does use interlace. It duplicates each line of pixels in the image, and the duplicate line is slightly altered to cause the dithering effect.
While not literally impossible, it doubles the bandwidth needed to play the video. This will result in either the low end Amigas not being able to play the video properly, or the user having to make very low frame rate videos.
It's a pity, because that HAM32K program works quite well.