I'm not saying it won't work at all, I'm saying that my opinion is that it probably won't work as well as you think it will. Canards are entirely different animals than our planes. They are lifting surfaces and react quite differently than our elevators and horizontal stabs which are loaded the other direction.
Sure, you may only have couple hundred $$'s in parts, but I'm guessing you'll end up with quite a few hours of time invested (count yours and your friends). While you can sometimes consider your time is free, in reality it's not. Everyone building a plane should assign some sort of value for your time.
Anyway, I'm all for experimenting, and will encourage you to try it. It's been tried before, and like I said it has worked....just not that well in the RV's. Perhaps it works great in the Canards, but again, they are entirely different animals. There are over 5,000 of these thing flying, and almost every succesfull gadget out there has grown in relative popularity in direct proportion to the fleet - this one didn't. I'm not the most experienced RV'er out there, but I have been around the pumpkin patch for awhile and have seen quite a bit regarding these planes.
Most of us are as carefull as anyone when it comes to bucks and believe me if there were an $100 or $200 altitude hold available that worked well I can guarantee you that there would be not just dozens installed, but probably hundreds or even thousands. Heck...I'm one of the cheap skates that built a $30K RV6 - and that wasn't done by buying all kinds of fancy stuff.
Like George said, all of us have rarely heard of people removing their altitude hold AP's, but we've heard quite frequently over the years of people removing their "trim" altitude hold. Now I have to admit that was before any newer fixes you refer to which may make the system work much better...I don't know. What I do know is that historically they haven't worked well in RV's.
If you are indeed successfull in creating something that works well, you can expect them to be quite popular and I hope you succeed - I might even buy one....but not before I see how the modified/fixed system works. I just want you to take a real world look at it. Read carefully what George said:
"I would not say its a waste of your time, but I would say its more for fun, for learning how to make a little microprocessor controlled device and make it work as best as you can in a RV".
That's basically the same thing I'm trying to say here. I truly wish you the best with this project and do indeed look forward to the results. Perhaps you'll find the next great gadget we all need!