Rei, don't suggest taking away HP! o.o;;
This idea sounds good...although increasing chakra tenfold seems a bit much, as you probably wouldn't get to use it all before dying....plus some jutsus could be abused to get many, many flawless fights*coughHyouton6cough*. And if you suggest not losing experience when you die from its effects....plenty of potential for abuse of it to gain levels fast.
So....maybe cut it down to increasing chakra threefold, or even just twofold? It seems a bit fairer that way