The suggested solution is flawed and infeasible.

They criticize search engines ranking and moderating their content. Splitting one search engine into an unfathomable amount does not improve that. It complicates it.

Offloading assessment and decision-making of choosing trustworthy to the user is infeasible. They choose a search engine because they trust them. Very very few people would actually explore and assess alternatives and create a ranking of rings and servers/providers. What you would end up with for most users is centralized meta-search-engines and you have your first problem again anyway, but much more convoluted.

The criticized SEO would still be a thing.

Search engines work well because keywords serve as "keyring" selectors, and a single engine can index all kinds of content.

None of this solves their problems. And the closing sentence shows that very well. Now there's more problems then were listed as the premise.

Now the issue is moderating web-rings, users, web-ring sorting, web-ring federation, server ranking, server and user blocking, and more.

You're much better off choosing your search engines.