I have been tinkering around more with the concept of bringing regular Winform/Win32 controls into the WPF compositing airspace. It's not too hard to get the actual Win32 control visual into WPF, the hard part is making it interactive too.
After a few failed attempts, I remembered how the WPF 3D team was able make 2D WPF controls maintain interactivity while on a 3D surface. Using the same general idea, I was able to make a working prototype. After killing a couple memory leaks and using the native bitmap code I slapped up, I was able to get pretty decent performance.
Here is a screenshot of my prototype. I added reflection as visual WPF "proof" :).
The video of this is below. The FPS looks choppy because of WM9 encoding kills the CPU, but I promise it was smooth and creamy as butter here locally.
Video capture of Win32/WPF compositing
(Its a zip file because my IIS needs to be configed for WMV MIME)