Great summary. Looking forward to seeing how this has gone forward.
Your presentation was quite nice. As we discussed, I would revise your diagrams and treat them almost like you do your words about the project. (The outcome of your sentence, for instance, shoud be the outcome of the flow diagram). I like the way the simple diagram is popping off the page.
Your argument is pretty solid at this point - work on making the product itself embody the experience you want the user to have. That is, think about how the design decisions of material, form, interaction can be a direct manifestation of how you want the user to feel. (Temperature, for instance, would give instant feedback to the user and would return to "normal" over time -- the poetics of this has a lot of potential. Where else are there metaphors for the use of your object?)