I tried to emulate your method - only up to Step 4, so not quite as short as you:

You have completely repeated my algorithm! Our results are various - I not precisely check a site of a segment in which it is necessary to add a point in the fourth Step. If the nearest point lays on vertex self-crossing is possible. I suppose it. In the fifth Step, all point will be borrowed with new places.

Now it is necessary to start genetic algorithm.

To write one or several functions which improve a contour moving one or several points, to other place of all contour.

Each time, it is necessary to check, whether the contour became shorter, if improvement will stop.

Everything, by me it is made two programs, for genetic algorithm.

The first - search of new sites of points on a contour.

The second - removal of self-crossings.

For the list lst-a I use two programs of improvement.

For the list lst-b I use only the first program.