I see a few shortcomings here...
1) If the "knot" is where the drive movement is coming from - where the stepper attaches to the system, how would you overcome the need for the stepper to move with the "knot"?
2) There would quite likely be efficiency issues driving such a beast from the pulley.
3) I could see this being very hard on pulley bearings, leading to all sorts of precision problems.
BUT,
These are not fatal to the concept - there might be something to it!