I like the idea but would make it a bit different. I would put a porcelain shade on the nozzel end and make a mount to go to a electrical junction box coming out of the wall to hide the cord then put the bulb inside the shade instead of it hanging down. Mitch
Alright, I'll be the black sheep and say I don't think it's excessive for 99% of the population.
Sure, most every one of us has 5-10 or maybe even a few dozen old nozzles laying around and could easily make this for another $5 in parts, but we're like about 1/2% of the population. The typical interior decorator that's making some sort of theme room to stage a model home with wouldn't know where to begin to get a nozzle, then do the work to wire it all up. They would be spending that much in a run-of-the-mill sconce from Home Depot, but then it would have to be hard wired in.
I kinda like the way it looks like the light is flowing out. Here's a similar idea I put in my daughter's room: