This is a pretty cool technique, although I don’t quite see the difference between doing everything via LINK attributes, rather than having a generic dropdown-list form element.
Yes, many browsers do use LINK attributes to create custom button bars for that page. This makes it awkward to have a LINK list that is very long. In your demo, it’s a dropdown list, an infinitely high widget. A toolbar is limited in both width (width of the window) and has a height of a single element.
Often in the article, it is stated that you can hav every page on your site as a LINK attribute. This is less-than-optimal, as text browsers tend to place the contents of the LINKs at the top of the page, and “normal” browsers could potentially have a giant, confusing, non-hierarchical list from which to pick.
Perhaps a better way to go about this would be to dynamically generate LINK attributes for previous/next, but leave the full site-list out of the equation. This will be a bit more meaningful, as it provides LINKs in context with the current page