That shirt is adorable. I've got to try my hand at reconstructing t-shirts more. I have the Generation T book too. Check out the wedding dress in the back. I tried to make it a while back with moderate success. You seem to have a lot of skill though, so I'm sure you could make it look awesome.
There's nothing like saving a piece of clothing from the trash heap. If you don't find a way of wearing out that you like, it can always be sleepwear. You'll be the sassiest recycling diva at the sleepover.