I would 1000% support something like this in a future HF. It was briefly discussed in a comment thread on Hive account@blocktrades post about second layer applications on Hive (@blocktrades/hive-s-future-as-a-2nd-layer-blockchain-network) as being a "holy grail" for blockchains, which I agree with.

The key is how it can be implemented though. I'm not entirely sure how you see this working:

they will also process the pending atomic token swaps by first verifying balances on the Ethereum based smart contract that holds the wrapped Hive tokens

I think it would have to be done by submitting a proof that the transaction took place on Ethereum which the Hive node can validate, or potentially having some time-lock mechanism like what is used for BTC atomic swaps. I don't know the details about how these work, but they have been done for other chains so hopefully we can borrow what they have done.

Either way I would definitely support putting funds towards researching and implementing a solution for this. I would think that if it's implemented for HIVE it should be able to be used for SMTs too which would be a big added benefit for projects to create their own tokens here one day.