OOC - Idea for a psychological

I got an idea for a slightly unorthodox game, and I'd like to gauge whether there would be interest, as well as get some feedback on my initial outline.

The idea is that all the players start off with a character that has no memories. Their characters are human, and they give them an appearance and a personality, but no recollection of their past. They wake up in a weird, frightening world. The world is constantly shifting and changing, and features people and places familiar to the player characters, as well as trials, obstacles and monsters of various kinds. Information about their past is spoonfed through their interaction with the world, sometimes just text or pictures, sometimes through actual memories. The way they respond to the information they receive, and to each other, determines how the world changes, what new challenges they face, and whether they receive gear or powers to better overcome the challenges.

In effect, I'll be deciding on the characters' backgrounds, and show them how it came to be. It could make for some fun, dramatic and frightening revelations. It'd also be quite spoilerific to share what I think the world actually is and what kind of goal the players have. Because of the nature of the game, I'd make no player character of my own.

I'll need to flesh out the landscape, the paths characters might take, and exactly how to communicate the characters pasts to them, but this is just an outline. How does this sound to you folks? What kind of pitfalls do you think I should be wary about before I develop this game more fully?

EDIT: I couldn't wait so I went ahead and created the game! You can find it here:
http://www.ongoingworlds.com/games/3596