Something like that with a threaded barrel, suppressor (see Hearing Protection Act) and light would make a nice nightstand weapon for the recoil-sensitive. Theoretically, anyway.
Maybe it would help if someone would make it a single-stack, but of course it would only be 10-12 rounds in that case. Didn't Ruger make a 10-22 (rotary magazine) in .22 magnum for a short time? (Thinking improved carbine here, obviously.)
I'm inclined to see the point of those who say that kel-tec needs to get better control of what they already have than trying to expand and make more exotic-looking weapons of marginal quality.
Here is their patent on a 33 round .22 LR magazine that can fit in the grip of a pistol. Rimmed cartridges can work in large capacity magazines, but they need to be designed right.
The patent concept seems sound.
http://gunwatch.blogspot.com/2015/01/kel-tec-has-new-patent-for-33-round.html