I also believe your puzzle is impossible.
Let's simplify the puzzle a bit more. If you rotate the left red (elongated) torus half a turn and merge the holes of the red tori you get something like below. It removes constraints on the string so, if anything, it should be easier. (These are chain links. On link easily goes thru the other link.)

I have been playing with it and there really isn't much you can do. It can't be separated. It is not a proof, well, you have to trust me on that.
Note that if you join the balls the puzzle becomes equivalent to Borromean rings. They become inseparable.
So does it matter whether the balls are joined or not? I think not. The balls are large enough that you cannot pass the chain links over them. So they might as well be huge. If they are huge they might be considered connected to infinity for all practical purposes and therefore connected to each other. One difference is that the string cannot pass over a ball any more. But by this can be replaced by allowing the string to cross itself. This doesn't change the "Borromean rings" nature of the puzzle.
OK, it is a bit intuitive I agree. But I don't know how to explain it better.
This being said I wanted to challenge your initial statement that the puzzle captures the essence of the one you link to.
For instance, my version above is not solvable, at least by experience, but the following version is not difficult to separate.

So it does matter what shape the metal loop is. A straight loop is not equivalent to a U-shaped loop.
Spoiler on 2nd puzzle
Pass the U-shaped loop over the chain link. You get a similar position with U on the right and the string passing thru the large loops of the U.
Then stick one side of the U in the chain link and pass one ball thru both large loops releasing the string.