The idea is pretty cool. Have you seen Night Games? This game seems to have a pretty similar vibe to it.
I checked it out at the recommendation of someone in the picarto stream yesterday - it's pretty cool, from what I can see. I think it's similar, from what I can tell, to a live action game I played with a group of friends (without the sexy combat). I like the combat system that I've seen so far, but I haven't looked too closely.