Nice post. I have to go with Phi though. I don't trust myself to keep a live blade in a display case. I would NOT be able to resist giving it a go, but my skills are not even close to good enough yet. Maybe one day.
Anyway - I fully support that a live blade can be kept as a display piece. My advice to the original poster about going to a sensei first was based on the fact that it seems he want to do some tameshigiri and... well.. we've all seen the 'batter up' approach that you mention.. Let's hope he will stay away from such endavours. Cutting with a sword is not really a good 'do-it-yourself' hobby..
Great day to you all