Even if CP had stuck with the smaller Dive Machine size for this, they would have a serious capacity problem so would have to go for this design, no matter how big the ride actually is.
CP2013 wrote: see if they can even add the splashdown and a tunnel (which this could really use)
Agreed. Even if it is just mentally, the tunnel is what makes Oblivion the great ride that it is. The drop is fantastic on its own but the fact you cannot see the bottom just makes it even better!