Njen, you are right, this is a fantastic way to do it ~ was hoping for an alternative, if for nothing else in the end than just to satisfy my curiosity for the problem at hand!
sprayer, I was thinking there was something in the Rayswitch Mat that could work, and this looks very promising, but is there something I am missing? I can't seem to get it to render the way you're showing it...
James, I totally hear you, but unfortunately all of the people will also be animated and it would be central to the style of the animation not to have them be billboards.