Thanks for taking the time to type that beast. I can see how most people never achieve steps 1 and 2. I find it difficult to come up with an idea that other people think is really cool or, if I do, it's a ridiculously difficult idea that I don't possess ever a fraction of the required skillset.
One project that I've considered before is some sort of auto-piloted arduino-based plane that would fly across the US from Jacksonville, FL (where I live now) to Mountain View, CA. I think this might be comparable to your T-Rex example in that, while it has no practical use, it's still pretty damn cool.
Thoughts?