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What is the difference between what you are talking about and hub-brakes?
Geometry
An internal disc brake has the friction surface on the flat circular ends of a cylindrical rotor. A conventional hub brake has the friction surfaces on the curved walls of a cylinder. It's easier to maintain uniform pressure across the area of the friction pair if the interface is planar, which is why disc brakes consistently outperform drum brakes.
gbj_tester
Disc brakes only in the hub... Hasn't this kind of been done... You know like before people did disc brakes... What is the difference between what you are talking about and hub-brakes?
Next mountain bike fad will be some kind of massive hub brake! :)