> how visually distracting the parentheses are (and yes, experience Lisp hackers learn to tune them out; that doesn't change the fact that they are visually distracting
I wouldn't call myself an experienced Lisp hacker, but I don't think the parentheses are visually distracting, any more than I think that the curly braces in C are distracting.
The only problem that I can really see with the parentheses-based S-expression syntax is the fact that it's not always immediately clear where a given S-expression begins and ends. This is a that's-a-feature-not-a-bug situation, though, because that visual ambiguity is a byproduct of the list-code symmetry that makes Lisp so powerful. This comes at the cost of some initial visual ambiguity. Even in Lisp, some sacrifices have to be made. The one thing that's a huge help, though, is Vim's auto-highlighting feature, which lets me know easily where the other half of a parentheses/brackets/etc. pair is. (This isn't unique to Lisp - it will do that for any open-close token pairs in any language).
Pretty Lisp seems to be an attempt to correct that more than it is an attempt to 'correct' the parentheses, which I view as a strength rather than a shortcoming of Lisp. A much simpler way to achieve that end goal would be to write a short Vim keybinding/plugin that would either automatically or manually (toggle on/off) highlight the entire function/list that the cursor is on, instead of just the opening and closing parentheses.
To me, that would be the best of both worlds, and it would probably be a very simple task for someone familiar with Vim configuration.