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Yep. That, or - shameless plug - use kindlevncviewer (on K3). Not sure if there are similar means for K4/K5, though.
But to the OP: Yep, it's been done before. Though I think nobody made it a fully-dedicated monitor, i.e. autostarting the application that cares for displaying stuff. But that would be simple to implement, just hook the app start into the boot scripts.
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