I want to make it real; I'm working on some interesting ways of improving performance right now. It is kind of a climb though, I have no idea when/if this would ever reach production, but it's almost a brand new world if we can make this work.
Do you have any plans to release the code you have so far? Seems it'd be a fairly big effort to catch up with where you got to so far, especially the live editor.
Actually, the really nice thing is that the live editor is easy to build on top of the programming model! Once the pieces work a bit better, I'll try to put this on codeplex (though WPF/windows only...).
I post to lambda the ultimate [1] often; if you check there occasionally, you can probably get a good idea of what I'm doing. Hopefully when I get this working, it will be a big enough deal that it will be easy enough to publicize :)
Everybody, really, if you have time and would like a look into the future, read chapter 2 of the paper seanmcdirmid posted (and co-wrote).