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... but isn't it the signatures that give each transaction its unique identity? I may be wrong, but without the signature hashes I think you can get two different transactions (two transactions that are exactly the same as far as scriptPubKeys, but spend different outputs) that hash to the same value, which would cause all sorts of problems, including replay attacks re-using old signatures.
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Interesting... too radical a change for right now, in my opinion. (I think Pieter's proposal is too radical a change for right now, too... I'm on the fence about whether OP_EVAL is too radical a change, but I think the advantages outweigh the risks).
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Pieter's proposal is <signature+2bits>