Perhaps so, but our system does employ a true hardware generated OTP, and operates similiar to what you describe - however, the important differernce is that we use a smal;l OTP to generate a larger OTP, like stringing the cable across the Golden Gate narrows. Just becuase we convert over from a full OTP to a prime number wheel system configured from the OTP doers not mnean that the result is not an OTP - in theory it is simple to break RSA systems, but factoring a 2048 bit number, or 4096 number, or whatever, makes the problem enormous - our system for large messages/files is similiar in difficult except that it is much nearer an 8192 bit number than 2048. The possibilities to be examined ar4e so large, that iot is not possible to solve then with a computer, even if all the particles in the iuniverse, all 10 to the 80 power of then were a Cray T3E, or better. Furthermore, all you would get would be all the possiblilities which would be everything!
I'm way out of my league here, but using a small OTP to create a larger OTP seems impossible on information theoretic grounds. Richard Coleman coleman@math.gatech.edu