I hear you on much of the above though if Nick Drake was still alive and had made as many records as say Roy Harper I don't think more than a tiny percentage of people would give a toss about the first two or three albums. A good looking bio and a tragic tale goes a long way to cementing your place in the history books. Look at Gram Parsons! I love the duets and some of the ISB and Burritos' recordings and also his bits of Sweetheart of the Rodeo but does the recorded output match the legacy and would the really good bits fill more than a C45? Not really and without Emmylou Harris not even that much. He's one of those really important artists in terms of influence that no one seems to actually listen to very much. If he had lived the music press would probably blame for The Eagles rather than sing his praises for "Love Hurts".
Anyway ... I only mention the artistic legacy thing because the whole ENO thing feels like a bit of a stab at making the history books. His Front Row special was all a bit Nigel Tufnell then again he did get the equivalent of the "Lick My Love Pump" question!
I love a bit of an art rock coupling of different art forms too and as I am sure I mentioned I worked at the ICA in the 80s for a few years and loved the mixture of music and performance art that was around at tht time and I do love an over-reacher. I am just not sure Damon's got the goods. Now, if he was to do an Elvis Costello and write an album of arch pop songs for say Sophie Ellis-Bextor or Kate Moss I would be all over it!