I suspect this concept never made it far because, like Kirbysthebest said, why make a partially cyclonic vacuum when you could have a fully cyclonic one? An improved version of the system would essentially be a fully cyclonic canister vacuum, which is what we have progressed to today.
Besides, I don't really think the "bag saver" compliments a bagged machine well to begin with. If it still leaves behind the fine dust, well, that's what kills off bags anyways. Small particles, not large ones, clog the pores of dust bags.
broomvac