Interesting concept, but it only works on-axis. Shift the viewpoint and you lose the effect. In theory you could also build a lens system that hides an object at the centre instead using concave conical (at each end) and convex ring (in the centre, around the object you're hiding) lenses. With both approaches you lose a little brightness.
I prefer an approach using software controlled integral imaging camera / display modules with position / angle sensors to map the incoming colour from a particular position / angle to the directly opposite position / angle.