Interesting pic Graham - thanks for uploading it :)
This seems a very complicated version of an inclined plane, in that it involves two sets of locks at the top, in order to remove the tub boat from the water. Presumably the thing was operated by someone standing on the barrier between the two locks - I can't imagine that being a very pleasant place to work!
The one at Coalbrookdale used a slightly different method in that there was a crest at the top of the incline with a small drop the other side down into the upper canal. That way, there was no need for locks as the carriage was lowered into the upper canal and picked the tub boat out.
Whilst I suspect it would have been just as easy to quarry out the inclined plane in that manner in this instance, the problem would have been that it then wouldn't have been self-acting.
The Coalbrookdale example used a small engine and winch to drag the carriage from the upper canal to the top of the inclined plane proper, something that would have been a problem to install underground. Thus, despite the fact that the double-locked method might be more difficult and costly to construct , it would be much cheaper to run in the long term.
EDIT: there's also the consideration that when this system was built in the 18th Century, haulage engines which could be installed underground were probably far and few between ::)
Hello again darkness, my old friend...