My thoughts, way too much friction from the pellets against each other. Friction causes wear, and the minute pieces of pellet lost from friction goes where? It goes out the effluent and into the tank. The pellets work by having a place for the bacteria to colonize and use the carbon of the pellets as food. With the pellets colliding that hard with each other, it is a less than conducive place for growth. Imagine trying to eat with your neighbor constantly bashing his body into yours.
Some movement is beneficial for removing the mulm, but how much is too much? In my own experience with pellets, I ran than in a fast moving reactor, a slow moving reactor and in a no movement canister filter. The result was the same, as far as keeping no3 in check, the difference was in how fast the pellets lost size. The fast moving reactor had the greatest pellet loss in the shortest time, the canister had very little loss of size. I have a feeling the blender approach will be a great way to sell more pellets.