We really abandoned the idea when computers got so cheap that you could just have a separate computer at each station. Mini PCs are $200, how will your solution compete with that? Thin clients won't get much cheaper than that as they have all the same hardware. Thin-client-less multi-user systems might, but the extra administration complexity ($howmany per sysadmin hour?) will make it a tight squeeze and you may as well just stick with what's familiar.

You could have more luck with AIO PCs.