Got a minor in optical engineering minor back in the day. I think it is theoretically possible to create a waveform with those LED's that would converge to an image at a distance. It's a similar problem to the recent deep field cameras on the market today that look at the waveform across the thousands of lenslets and reconstruct the image at multiple virtual focal planes.

That said, those calculations are wicked complicated and take computational power, so hopefully some genius PhD comes up with an algorithm to generate those wavelet images in O(n).

An array of lasers which was columinated at the point of emission could do it (a well of 500nm cavities, with an LED module at the bottom could do it.

On the other hand: tensor displays are basically already there for what you say (http://www.youtube.com/watch?v=4r6lY8S4A6E).

It's a pretty solvable problem, we're just lacking the miniaturization (and power source) to make it practical.

Future product idea, ever-cool eye drops. Keep the CPU in your contacts from over heating with this fast evaporating fluid.