Good concept, but looks like it needs some development enhancement.
The first iteration of new technology is never as good as current mature technology.
As you may not have noticed in the article, the telescope result image - tho clearly inferior to the target image - has to be respected considering that the test optically simulated the challenge of photographing the target image from 280 miles away. So you don’t expect perfection.Presumably a larger array of sensors, which is in development, would produce a sharper image at the same distance.
Saving 90% of the mass in a satellite payload is nothing to sneeze at.