PeterStock, you're mathematically and practically incorrect. Your approach doesn't have any relationship with constraint-based/impulse-based/position-based dynamics. And repulsive impulses don't depend of the velocities as a whole. Read page 227 of this paper if you want to get an approximate idea of what an happens during iterations:
http://www.cs.cmu.edu/~baraff/papers/sig89.pdf
It is an old paper but it is the foundations. And if you want to solve for friction then you can definetly forget about applying (infinite) forces. Always use velocity based approach for games. Of course you an apply forces individually to bodies before the velocity update (out of the solver).
I believe Chris Hecker has mentioned in his papers only a single contact point and body. For a single contact point then he is correct. Otherwise what Randy said is correct.
You just can't expect a good and fast rigid body simulation by neither applying impulses individually nor applying repulsive forces. You should implement an iterative velocity-based constraint solver instead in order for you to solve your problem. Of course this doesn't means that you will be creating large matrix equations. I mean, you can do that if you want, but this is quite impractical and difficult to debug for games in my experience.
If you are really very interested in this I recommend:
Read Erin Catto's resources.
Implement your engine based on Box2D Lite.
Parse Box2D to match your current engine's needs.
Not taking the "impulse" word in consideration, Chris Hecker's math on this post is very different from what Catto's uses, and as was said you probably will have to increase your math (specially calculus) knowledge if you think is not sufficiently when reading these resources.
There are well-known solutions for rigid-body dynamics for games currently. I don't know if we can come up with an algorithm that can cause a big impact that won't be affecting the game performance crucially since the best way of doing something at run-time is by definetly not doing. Maybe in engineering an approach like that might get some attention IMHO.