Yes! Emacs has already taken over most of my desktop environment apps with the exception of the web browser and a few apps like Blender and Gimp. I haven't gone as far as you, getting each Emacs buffer to display in its own frame in is own WM-level window, but that would make for a more immersive experience. Also, your color scheme is similar to the one I use now. I love it.
I can't wait for the day when software written in Lisp takes over my window manager, then my panel, then my session manager, then my whole operating system kernel.