@toka: Whoa... that's really an impressive wishlist, so let's get things straight:
What you are asking for is almost a completely new firmware, not a modification of the existing one. I'm afraid this can't be done, at least not on a hobby basis.
The one crucial thing is that it's almost impossible, without MAJOR changes, to change the functionality of the home button. Home button = start home screen booklet. Nothing else.
The solution that I proposed above would require a patch to the reader (a relatively small one, but it's still quite a bit of work to find out how exactly it has to be implemented), and a substitute for the home screen booklet (which would have to be written from scratch, but that is -mostly- standard coding).
What I can offer is to take a look into the abovementioned two topics first. No guarantees or deadlines though. Once that works ok, we could still get back to see whether it's feasible to include some of your suggestions concerning the home button (or, for instance, "key presses with indicator"). Interested?