It doesn't seem like a very dumb idea, it would go a bit in the direction of literate programming. (see e.g. http://monday.sourceforge.net/litprog.html )
Currently switching between controller and view indeed takes a mental and physical context switch. Sometimes views are reused across controllers, so web2py should internally still be based on separate views. The main drawbacks, then, as far as I can tell, is that the application would need a kind of "tangling" or "compilation" step to separate the controller from the view + it would be less obvious where to go looking for a view; how to avoid someone else changing the generated views (which then will be overwritten again during the next tangling step)?
