Yeah, as someone who's discovered first hand the frustration of keyjamming (or whatever you'd call it) this seems like a silly limitation to me. Unless you're going turn based or plugging in a bunch of keyboards, but I don't think many people have 4 keyboards lying around.
I think if you use that key layout, but make a game where only one or two keys are needed and keys don't get pressed together, then it could work great.
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So much SOUL! Just like this! :D The continual scorekeeping sounds awesome :D
Still, sounds like a fun kinda jam!
Or maybe a game about key jams!
Single key 4 player games people!