"The digital approach has a lot of rigamarole up front, but after that it's so much easier. Nulling is a snap, sensitivity and operating point are abstracted somewhat away from the vagaries of the analog front end, and linearity can (hopefully) be improved using simple math." - Dewster
I think you are right, Dewster.
Looking at the FPGA potential, I still think it is "tight" in terms of resolving the capacitance changes with enough resolution that fussy ears cant detect any steps - but probably not impossible..
And as you say, once you have this "capacitive distance" in digital form, you have the power to manipulate this data in ways which are complex and difficult to achieve with analogue - perhaps even impossible to achieve in analogue if one has a composite system which also produces the tone.
For me, splitting the detection from the sound production, is a way to make life easier - I am doing this with analogue computation on my advanced designs - converting capacitance to a voltage, and manipulating this voltage to perform linearization.. But there are big challenges - and some things which are a pain in the backside.. for example the exponental functions which are based on transistor charactaristics, and require thermal ovening.
The tone generation is a challenge all of its own - and here I think analogue beats digital hands down - But, if your digital theremin was able to produce a control voltage output, then analogue tone generation could be implemented (it could interface to my true analogue heterodyning voltage controlled theremin modules , LOL ;-)
From a pragmatic perspective, I think you are on the right track and I have gone up a lonely alley - Most people really dont care what their theremin sounds like - or even know what it sounds like, LOL ;-) ... They love their theremin and they think it sounds sweet and that they can play it in tune, and if Uncle Howie says that an Enkelaar sounds like a RCA, then it sounds like a RCA!
As long as you dont tell anyone that your theremin is digital, people will love it! - So encapsulate the FPGA board in epoxy, but make the coils big and visible.. Then sell it as a "true Pro theremin" - Bob got away with selling the E-Pro and its "heterodyning" is done in a cheap CMOS exclusive Or gate.. He had the good sense not to tell anyone.. ;-)
Some people noticed that something was "wrong" - But most people love the instrument and its sound.. And thats all that matters - what the MAJORITY of purchasers and users think.
Fred.