[cr0sh]

Of course it was - the barrel distortion system was originally developed in the 1990s for and by (?) LEEP:

http://www.leepvr.com/

Back then, the optics were key - and very expensive - but while the optics were originally used to warp then unwarp the image (ie - analog warping), it was thought that the warp portion could be done in software (but computers at the time weren't powerful enough to do it real-time).

I believe that Palmer was fully aware of this, and when the LEEP optics patent expired, realized that a cheaper version could be made, and combined with other parts coming on the market (particularly lightweight, large, high-res phone displays) to build a "dream" HMD.