Personally I really like this idea. I'd skip the chest pocket though. If any pockets, maybe either handwarmer or BDU-style (either below or above the belt line). Alternately, maybe pockets over the hips, so the weight distribution hangs directly under the shoulders? Just a thought.
I assume outdoor-use, right?
4 yards probably isn't quite enough, but I'm sure the material would make a good emergency-bivy. More warm/solid than a HeatSheet bivy, less weight than a traditional sleeping bag.