Admittedly I don't really understand your construction. But this solution, if it works, doesn't look practical enough that it could be routinely used in practice like Foo|Null could be. By the way, some languages even shorten "Foo|Null" to "Foo?" as syntax sugar.
> but you get to keep `null` away from your code...
I don't think this would be desirable once we have eliminated null pointer exceptions with untagged unions.