The design in the OP is still more appealing (if less practical) to me because its movements and how it plays are still fairly close to how a human would play (Precisely because of the sliding). Sort of like how we generally find it less interesting when a specialized robot can perform some specific task rather than say a humanoid robot, even if it is worse at said task.
I suspect that the software could address that. We can "humanize" MIDI files, after all. (Not to mention that we can prepare them by capturing performances.)
I'd like to hear a simulated slide by a ripple sent to the fixed-position actuators; would it be convincing?
https://www.youtube.com/watch?v=n_6JTLh5P6E
Replicate actuators across the fretboard; don't have anything sliding. No bulky box. A production version could be made more compact.