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Yes that's what's he's doing, but I don't see how that's different than an embedding into an Euclidean space. Embedding is still embedding. When you talk about standard charts and coordinates manifolds there is no embedding whatsoever. So a priori his approach can't be an alternative to the standard way no matter how clumsy he says the standard coordinate approach is.
You just said in a comment some people say this is the alternative way to do differential-geometry, using vector manifolds instead of pseudo riemann metrics. If hestenes doesn't have a precise definition of what he means who has?
@ben mckey if vector manifolds are not intrinsic than I don't consider them a coordinate free alternative to atlases and charts formulation of manifolds.