I totally love this method. Glad to see it in this forum. The first place I believe I saw this was from Andre Scholten in 2009.
http://yoast.com/tra...e-analytics-ii/ (This link is to Andre's updated method). Bryan, happy to see that you brought this to the Moz community and now it is here. BTW, if someone out there isn't following Andre, you should.
One thing that I want to add to this conversation is that instead of combining the term with the position, I suggest simply passing the position to a user defined variable. That tends to give quite a bit more flexibility to reporting in the UI and it doesn't add as much fragmentation to the keyword reports. Rankings can then be drilled down into or added as a secondary dimension.
Something to keep in mind with these reports is that with Universal Search there can be a lot more than 10 results on the SERPs when looked at through this lens. In other words, this is a different way of modeling rankings than most other traditional SEO reports. Not a bad thing
per se, but something to be aware of.