Make sure to allow exceptions for water and state borders. Your current draft would make districts impossible based on the shape of the state borders.

Also, just my opinion, but ignoring roads and streets is kinda against the point of districts. Any attempt to remove gerrymandering just turns local representation into a state level popular vote. It kinda becomes pointless when most issues are binary along party lines but the idea is that different populations have different interests that need to be represented. For example, districts of rural farmers usually curve around and avoid cities. In your example, it would need to expand evenly to include part of the city or its suburbs.

This would most likely hit rural populations harder as many of the rural districts will hit a population center before reaching the required size. There will probably be a rural district on each side of every small city that would be outweighed by their suburban votes. I'd like to see a map made this way to be sure, but I suspect this will be the case.

The current system is completely arbitrary but the districts still somewhat follow demographic voting blocks.

IMO it should at least follow streets or have an exclusion for highways to be treated like water and ignored in the convexity requirement. One thought is to have district "center points" and assign every address to the district center closest to it, measured by shortest driving distance along roads. This will at least keep neighborhoods more together and will prevent something like a single HOA neighborhood from being split into 2 or 3 different districts by a geographic straight line.