Yeah it would be cool, but so not practical, the only way I see it working is to use refurbished original drives (similar to Treamcast). With FDS' added memory you'd definitely need external memory for the added 40K, and if you're going to do that, may as well have ROM/mapper emulation and forget the original disk drive.
I don't have any pictures to post right now, but here's a discussion (do other searches for "RGB" on the nesdev board.) http://www.nesdev.com/bbs/viewtopic.php?t=1881&highlight=rgb&sid=a0d4b4b96421b0f871e3568ece8d5948 and a few pictures comparing regular composite and the RGB PPU: http://www.disgruntleddesigner.com/chrisc/gotRGB/screenshots.html#nes
My friend uploaded some great videos how you can improve on the design of the Yobo FC. Yobo FC- Composite Boost Mod http://www.youtube.com/watch?v=leKXRt_fvKk Yobo FC - Connector Reinforcer http://www.youtube.com/watch?v=dRLxfSrFyak