Maybe, someone could point me at an example of this, maybe even Ello, it seems that shaders can't do this due to the way they work.....

To clarify the probable approach: Do you think it is a case of rendering a second view onto a model and then somehow distorting the model?

I presume that it will need further modification to get the view to 'bend'. A magnifying glass or fish eye would just be a different camera.arc? for a heat haze the entire view needs to be wobbled.....so this would not work......

YES!!!! - I have seen Ello demo and it does indeed warp and bend the environment!!! Great work Ello.......ok so where do I find how to do it......

Anyway I am going to track down the demos you mention, in the meantime please feel free to explore this further.....Other similiar view skewing FX would be awsome, shockwave-ripple, drugged up strangeness.....all sorts.