Yes! Fog definitely improves it by giving it more atmosphere and blending the edges abit. But ideally, some sort of edge blur would be perfect. Maybe photoshop has such a thing......I could even use canvas filters in there. Lots of directions to go.
I'm not sure how I'd use hair to blur the edges. But it's probably a good idea.
How it's done....
I just "cut up" the image into pieces in photoshop. Then I roughly build proxy models of them in AM. Finally, I eyed the angle of the models in the original and projected the cut up images onto each model. In the render options, I set Flat Shaded to ON.
That means there's no shadows. If I had more time, I could probably unset flat shaded and light each element evenly, but I don't have that time. Here's an image of them in the chor and the fog mov.
Thanks for the comments.
castle.mov