Pull up resistors have solved the same problem much more simply for decades. Even with ICs, manufacturers can still make weak cables that lie about their capacity then burst into flames. The IC is not what making the cable safe, it’s the manufacturer. And if all else fails, the host can still directly measure cable resistance with some help from the client.
I mentioned this in another post, but yes, resistor dividers are useful and have been used for ages. However things like component aging/damage and simply having enough headroom between different options limits the number of discrete states you can convey with a resistor divider.
I’m usually not a fan of overcomplicated solutions, but these identity chips aren’t that.