This is insane.
It will probably stand.
The issue of arbitrability is, itself, arbitable. A contract can delegate questions about the validity of its arbitration clause, and the unconscionability of same, to the arbitrator himself The trial court (if any such thing exists) is left with no other questions than "does a contract exist." If it does, then all questions related to arbitration are left for the arbitrator to decide.
It is conceivable that an appellate court, faced with a decision on this contract, would decide that the FAA did not contemplate arbitration clauses this insane. It's even conceivable that the arbitrator might decide that the clause empowering him was unconscionable. But, of course, you can't appeal an arbitrator's decision about the arbitrability of a contract. So every potential litigant must individually get a decision from the arbitrator, and -- in the event that the arbitrator decides that arbitration is within his power -- it is extraordinarily procedurally difficult to bring the issue before a court with the power to decide the issue once and for all.