Is anyone working on building a nostr client stacked on holepunch so that the client / server model is eliminated entirely?

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CANNOT COMPREHEND HOW THIS WOULD WORK.

Me either, technically, but it seems if each users posts and its replies were in a "room", and then a client was developed to read and aggregate the posts and replies in a given set of "rooms" and then served up in a thread like way, it might be possible.

You actually described Nostr, relays are rooms

If the relays are the rooms, would it be possible for each pubkey holder to run a relay on their device using holepunch as the initial seeder. Each follower who joined the relay would also become a seeder for said relay. As the number of followers increased, the overall relay bandwidth would also scale.