It looks a bit too simplistic: Blocks with up to 4k items are stored as sorted lists. Having to insert in a sorted list up to 4k items seems very expensive to me.
The threshold was chosen empirically. Modern processors are very fast when operating on memory sequentially, as the prefetcher achieves the best case scenario. The cost of a cache line miss is so substantial this ends up dominating things until "n" is in the 1000s. A lot of programmers' intuition is off the mark on this point.
Having said that, I applaud that this type of datastructure is being investigated. An efficient bitset should be present in every collections library.