Someone already created that[1] using custom kernel driver and there own CDN, but they seem to of abandoned it[2], maybe because they would of attracted Valve's wrath trying to monetized it.
That's actually quite interesting. Not entirely what I had in mind but close! My version would have only the first boot be a bit slow, but the aspect of dynamically replacing local content there is cool.
This would be extra cool for LAN parties with good network hardware
This would be extra cool for LAN parties with good network hardware