So essentially, instead of a pop-up box asking "Do you want to counterspell yes/no?" you want us to be given control of a character any time said character could take a reaction. There we could click various applicable reactions on the hotbar?

But, going by your example of getting knocked of a cliff in the video, wouldn't the game would still need to freeze while you're making that decision?? Otherwise your character would fall to the ground before you could make the decision.

The main benefit of this system seems to be for cases where a single character could take multiple reactions in response to the same enemy action. Your proposed system would condense the multiple sequential pop-up boxes into a single hotbar decision. But overall, for cases where you only have one choice...a single pop-up just seems much better imo.