"dewster, would your approach be swamped with 50/60 hertz hum from the environment? The amplitude of the AC field would be fairly constant so touching the wall of the cylinder could shift the level to trigger a midi single note sequence per touch?" - Christopher
Good point, this would probably be better done via offset heterodyning and digital means, where notch filtering could be used to squash the mains field. Note triggering could be via large capacitance shift.
"Who is going to make all this stuff, is it practical?"
Who knows ;-) I'm just tossing my 2 cents in.
I don't think that thing would tolerate a 100V sinewave at its input very well (nor would a Theremin oscillator likely tolerate it).