HTML was never designed to do what it is being used for. It was originally a subset of SML, which was just supposed to be used to add generic formatting tags to book-like online documents.
What web-site operators need though, is as much control as possible over the placement of pictures and text, and make them appear the same on every machine, not "tailored" for each machine. The tailoring of HTML to different user configurations has become the great nightmare for website developers, who have to tweak their sites so they don't mutilated by browser tweaking.
Not to dismiss your idea, but with CSS style sheet you can already specify "absolute" positioning of elements on a web page. However, this process is needlessly complicated and messy.
I agree with you, and have felt for a long time that the web browser could be so much better. Keep the old browser for compatibilty and on-line books, but for any real web-site it would be so much easier to use the browser that you described. Just specify coordinates and the image or text or special effect. People with midget screens can just scroll to see anything off the edge of the screen! ..or the web site designer could make a button to select display resolution.
I'd join you in developing it, but I have something else I'm already working on. But if you finish it, I'll stand behind it and make my web page for it.
That's my 2 cents.
-Gilderoot