Armstrong's approach to forcing employees and directors to own company stock is indeed a very good move. If the people in the know aren't willing to invest in the company they work for, how is an outsider with minimal knowledge of the business operations is going to invest in their company? The same holds true for the directors.
Having said all that, unless I am mistaken, the former president of AT&T John R. Walter (not to be confused with John R. Walter of Lucent) had similar ideas but weren't given a chance to implement them.
The concept of employees investing in their company stock is not new. Financial advisers are very much against it and recommend diversification. The thinking is that should the business environment turns unfavorable, the employee suffers both in loss of his job as well as the monetary losses associated with the stock price decline.
Despite its drawbacks, I think it is a good idea and gives the outside world a favorable impression.