Nice writeup, looks really cool. A further step might be to 3D scan the installation location you're placing it in to generate a completely custom mesh that takes into account the unique geometry of the room - you could even include the furniture if you wanted to!
Interesting idea! Maybe you could do it 'live' using a transparent curved display as the shade and a Kinect or equivalent...
One thing that also bugged me is the fact that an isotropic light source forms an unevenly-lit image, so maybe you'd want an anisotropic emitter too.
At this stage you've basically invented Illumiroom and you may as well just use a wide angle projector. You don't have full 360 coverage though so you'd need several projectors.
