Nope, there is a limit to how far you can work with redstone, after a point, minecraft will not update the blocks.(This has nothing to do with th 15 block limit for current transmission)So with these physical limitations, Building a computer in minecraft to play a virtual minecraft is imposasible because you would need to go thousands of times over the size limit. Also there is no way to make an rgb display.
Actually, it is possible to make an rgb display, it's just a lot of trouble to wire up. You can use doors with different colored cloth behind them for the different colored pixels.
If you made a more powerful computer (don't take this as an insult your's is amazing work) say, 64 bits? Would it be theoretically possible to play minecraft on it? You would need a display and a method of control but would it be possible?
Go check out Hans Lemurson's channel on youtube. He ran Minecraft in Minecraft :wink.gif: