The problem with your image on a realistic developing scale is that the contact photos are stored and re-sized to Google, so if the contact photo was that big the imagine would have to be blown up and really pixelated and sloppy.
Thats why in my OP I believe I said one of the problems would be within the app would have to be a feaure to select photos from your gallery to crop properly.
But hey that's a great idea and I took this post here to see others ideas not put people down and say this is what I want lol but again, I like your idea :]
The way I see it in portrait probably takes up too much cpu.
Scroll to the contact photo, then it locks to them and under there photo would fall all the last 5 or 7 texts in an animated fashion then be alligned properly and be ready to type!
Lol it's a cool idea to think about, and I'm glad I got you thinking about it too.