That does sound pretty interesting. I can see how it can get out of hand quickly, though I cannot imagine that is a bad thing.
When you say chained LFOs, do you mean one LFO modulating another's frequency/rate? If so, that is actually a really interesting concept and I can see how that could create chaotic and interesting waveforms. Sampling it with a quantizer would make it all the more interesting.
I assume that S&H's can be worked into this in a similar fashion as a quantizer, no?
Yea, merging digital and analog is definitely really awesome. It really brings the best of both worlds and blending them together really makes for some neat results. Interesting you mention Arduino, that is something I had gotten into in the past; I'm not superb coder, but I can get by sort of. Using it for synthesis would be really fun.
There's a company called Bleep Labs that makes standalone synths and devices, a few of them use Arduino now that I think of it.
I might try implementing some of their ideas and designs into a Eurorack format.