It is a nice approximation, but fails short of the whole experience.

Imagine that your shell was like those notebooks, and not only you can interact with the whole OS, you can even change existing notebooks dynamically by reloading code that they depend on, e.g. a displayed image gets a new effect added to it.

Hmmm, somewhat but it’s missing the ergonomics to the point that it can’t be used the same way.

The best analogue i can come up with is a sql session connected to a live database.