I think this idea is worth investigating further. The ideal situation would be to have the head of the bivy open or only covered with mesh. But in a scenario where the head section of the bivy needs to be closed, one is relying solely on the breathability of the fabric to get rid of moisture.
The fabric needs to get rid of moisture from two sources: mouth and body. I think it’s safe to assume that our breath produces more moisture than our body. In absolutely ideal conditions, WPB fabric might be able to transport all of that moisture effectively, but such conditions are rare. Yet it may be the case that the WPB fabric can transport our body-produced moisture, but not our breath-produced moisture.
If that’s the case, then a moisture dam makes sense. Assuming a perfect seal, one would end up with two humidity “zones.” Below the neck, there would be a low-to-moderate amount of moisture production, and about 15 square feet of WPB fabric (moisture transport should increase linearly with surface area). Above the neck, there would be a high amount of moisture production (from breath), and only about 6 square feet of WPB fabric to transport it to the outside.
So you would have a high humidity zone above the neck and a low-humidity zone below. Quilt users typically rely on knit caps and balaclavas for above-the-neck insulation, and those aren’t particularly sensitive to moisture. Down, on the other hand, is. So I think this is a good idea and worth pursuing.