Wouldn't it be better to just transfer the BTC to a UTXO the nsec can unlock?

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That's exactly what it does. The npub and taproot addresses are the same key.

ohhh I missed that! Nice! Let's go!

I'll add a sentence in the NIP to make it clearer. Thanks for the feedback!

Added: "Note: that taproot address and npub are interchangable addresses with a different prefix. Sats are transferred to a UTXO the nsec can unlock."