Kinda surprised that there's no discussion on that this basically just does not solve the non-canonicality problem.
Forgetting to do the range check on the first_byte==255 case and just letting it do 64-bit wraparound is exactly as much of a plausible bug as missing range checks on LEB128. Any test suite with the goal of covering canonicality will trivially cover both properly; and a programmer that implements things by reading 7 words into the spec, saying "oh yeah I got this" and goes to implement what seems simple, will write a broken version of both.
Perhaps the biggest benefit is just not being associated with a format that tolerates non-canonicality in other places (though, if bijou64 gains traction, it'll only be a matter of time for wraparound-check-less versions to start appearing in places where the wraparound is fine); and I guess also it being less annoying to implement the canonicality check, though hopefully people writing security-sensitive software aren't ones to skip out on correctness checks due to annoyingness.
In a sense, bijou64 could perhaps even be more problematic - it invites not doing any range checks for the smaller inputs because they obviously don't need it, and so you can just forget to special-case the max length case; whereas LEB128 makes you already care about it at the first point it is actually LEB128.
(of course, the format does still have other benefits; enforced canonicality is just...not one of them)
Your range checking requirement is just one of many things that may or may not be necessary to someone using this. Taking them all into account (besides the fact that may be unfeasible, if there happen to be some conflicting requirements) would render the solution to be unnecessarily complex. It's better to focus on the minimal set of viable requirements and thus have a base design as simple as possible. For additional requirements, just go and complicate your design (and be the only one having to pay the costs that come out of that complication), hopefully only when and only for as long it makes sense to do so. For the need you mention, some kind of container wrapper may do, with the amount of number's words specified in it. A good thing is that you'd be able to limit the use of such container-wrapped numbers only to some situations (like the exchange of data to and from unsanitized areas).