Neat!

Another benefit I see is that you could quickly generate many heuristic solutions by randomly translating, rotating and/or uniformly scaling the curve, and then choose the best.

It does look like it can produce crossing edges, which are suboptimal in Euclidean space, but these are easy to rectify -- whenever 2 edges cross, just swap their endpoints for a quick guaranteed improvement. Because doing this strictly decreases the total tour length, and every such decrease is lower-bounded by the smallest such decrease among all (nCities choose 4) possible sets of 4 cities, repeatedly doing this must eventually terminate in a crossing-free tour.