Kinda reminds me of that time "bad dog" showed me his improved kill bag at the hotel coral a few (many)years ago.Bragged about how he kept ice in it for four days.Also bragged about how many cars in ensenada had "bad dog" stickers on their cars.
I can see how it might keep ice longer but it's too small to put any amount of fish or ice in and way too much work. That cooler will keep ice and beer cold all day without the mods. And what a bitch it will be once water and grime gets under the foam and tape. Yikes.
Yeah, it needs to be sealed so you can effectively wash it out. Or, use a liner. Like Mullet said anything that goes in there needs to be sealed.
My buddy made a giant one of those and lined it with FRP, sealed all the corners and edges with silicon. It's a stationary box made of plywood to hold 100's of lbs. of fish when 2 or 3 guy's come back from long range fishing. It will hold 3 cows, I've seen it.