This idea is something that we had thought of as well, but were hesitant to use. I agree that the use of more jewelry like bracelets is better than the hospital band, but it still comes back to resident choice.  I can't think of one of my male residents that would choose to wear jewelry, any more than then they would choose to wear a hospital bracelet.  This may be the best we can do, but anytime that phrase that is used, I always feel like we're taking the easy way out.  
There has to be something else - the ultimate answer would be a change in interpretation of the JCAHO standard.  I know that in their home care surveys, JCAHO does NOT require the use of two patient identifiers if the home care agency uses consistent staff to care for the patient.  I think there's an argument to be made for the same exception in the SNF setting.  Our consistent caregivers spend eight hours a day in the resident's home. Consistent home care staff obviously spend less than that with their patient.  
I'm certain I'm preaching to the choir here, but with all of the work that so many people have done around these issues, our regulatory and reimbursement agencies need to begin to look at what we're doing and recognize that it's 180 degrees from what we were doing 5 years ago.  We've changed things for the better - it's time that more of our "overseers" do too.