It's definitely an interesting ideaIt's very similar to that, except that the feed updates in real time. You don't have to refresh the page to see the latest activity.
I wonder if the folks at @DragonByte Tech would be interested in pursuing this? They created something similar for vBulletin 4.
Custom work keeps me pretty busy these days and I have another vB4-era mod in development (InfoPanels) waiting for the time to finish it, but after that's done I could definitely look into porting Live Feed.