I don't know what you mean by "too far removed from current capabilities", but I doubt we'll even start working on the problem for two or three centuries.
No, it seems more likely to me that we'd use our growing knowledge of genetics and psychology to hack out the part of ourselves that needs to be outside, and opt for a purely enclosed existence on Mars.
However, the thought of a telescope-quality mirror 250x the size of the JWST is pretty amazing :)
Mars receives 593 W/m^2 flux, so each IKAROS-sized reflector could produce about 100 KW of energy. Given the expected difficulty of large scale terraforming and colonization efforts, it seems the cost of, say, the equivalent of 10,000 IKAROS-sized mirrors (~1 GW, comparable to a large nuclear plant) would be relatively minor.
Whether that would be more cost effective than shipping an equivalently powerful reactor or other generator is questionable - it will presumably depend on our lifting capacities.
So you also couldn't just vaporize the ice, you need to split it up. Solar heat could be sufficient, but the water will then be missed everywhere else on mars where life wants to grow.
And Mars is dry.
So I would first use the water in enclosed habitats. And then after, if there is plenty of water left, one could start to think about smoking that up ..
But there might be other options, once you have lot's and lot's of autonomous machines and rockets available and allmost unlimited fuel (sun?). But without that? Not a chance ...
The notable benefits from such an approach would be the ability to easily deliver asteroid-based water deposits (aim it at Mars, let reentry do the rest), as well as the significant simplification of ground based colonization technology - it's far easier to build resilient habitats for a non-breathable atmosphere than it is for a vacuum, and the risk of accidents and difficulty of venturing outside is much, much lessened (a face mask or filter and oxygen tank instead of a bulky spacesuit), not to mention the radiation protection afforded by a thick atmosphere.
But it has to be carefully considered, as it might hinder a longterm plan for a nice, breathable atmosphere.
But once we reach mars, we are probably busy first, with primitiv things such as life support ...
we could also bore into those tunnels and put caps on the hole afterward, have some of those channel light into those tunnels too.
Someday though we may be able to breathe on Mars