Yea I had seen your exact same luggage rack setup on Tiger Ness' youtube video. Nice setup, and looks very sturdy. Tiger says Hitchcocks rats it for 10 kg, if I remember correctly. Obviously any pillion will weigh more, and I do want ot be able to swap between seat and luggage.
When I ride my bike to town for shopping, its usually not just one store, so I need locking luggage. Its a deterrent and not foolproof, I know, but when there are half a dozen homeless lurking nearby and they see me locking up, its causes enough pause to make it worthwhile.
I like the looks of soft luggage better actually, just not the lack of security.