When I tried this I liked it, too, but after a week or two gave it up: I write code for others to read, and, sadly, they will be reading it in a fixed-width font.
See, for an example implementation, BlackBox Component Pascal - Windows only, but runs moderately well under Wine.
More examples: http://mysite.verizon.net/astronaut/vim/align.html#Examples
Of course, I really hope nobody's coding like that. I've never seen anyone who's been able to maintain that kind of formatting consistently.
I don't see any reason why proportional fonts shouldn't work for most programming styles. The problem is that most existing proportional fonts aren't very well suited for programming. At the very least, you need a font with unambiguous shapes for similar glyphs, like 1lI0oO`',.;: