The site is inconsistent in it's own suggestions. "People" gets shorted to "peple", but "edible" is shortened to "edbl", losing its final e? And how do you tell that both L's are sounded in "holly"? I don't hear a difference in the sound of the Ls between 'holy' and 'holly', only the sound of the O. Why does 'eye' become 'y', which is not only a
really bad contraction, but none of the rules suggest why the first 'e' is lost?
On a first reading, this new regime sounds like it's just as full of "you-just-have-to-knows" as the thing it's trying to solve - and it makes the context of the word even more important to figuring out what it means. For example, "eye" by itself is totally unambiguous. "y", suggested on the site, is the name of a letter (and the pronunciation of that is "why", not "aye"), and "ey" is yet another word with yet another pronunciation (contraction of "hey"). Nothing is gained from shortening "eye", and something is lost. I just don't see Cutspel actually solving more problems than it creates.
Finally, why is it "cutspel" instead of "cutspl"? The stress is on 'cut', so 'spell' doesn't need that unstressed E before the L, according to rule 2...