I would assume that if such a method existed NASA and other space agencies would be all over it...
In addition, you can't just "[divide] the momentum by 10 every time you transfer the momentum". Angular momentum has to be conserved, so you can't just magic away 90% of it using one maneuver or another. Reaction wheels have more states than "on" and "off", too; I'm more than a little rusty on my physics, but I would imagine that in order to cancel the torque from X1, Y2 would have to spin at a *different* speed due to differing distances from the center of mass.
Craft in real life aren't operating in a closed system, either. There's drag, uneven gravity gradients, etc. which all constantly produce a torque on the craft, so no matter how you transfer momentum between wheels the overall amount of momentum will change to a point that you have to use RCS.
And r.e. the patent: Being granted a patent does not prove correctness. Perpetual motion machines have been patented.