As a painter, I've had to repair that T-111 many times using different methods. WOW's way works well as you just have to cut off the rot and then apply a trim board. PVC is great because it won't rot and can touch the ground without wicking up moisture. Wood is ok too, but you will want some sort of barrier underneath it where it hits the ground or it will rot in short order.
You can do it as you are planning to do, but, you still have to deal with the moisture problem at the bottom and the repair piece(s) you put in will rot just like what's happening now. The PVC trim idea is best in my humble opinion.
And, to be perfectly honest, T-111 is fairly cheap, so, removing the whole sheet is a good option too. Then you can replace it with engineered T-111 OR Fiber Cement T-111 which can be painted and won't rot.