Yes of course it could. I actually have a styling model of a 'prowler' inspired Reverse Trike, and it has that type of rear treatment. It look pretty good. It's in morphic studies thread. Hmm, nope didn't see it there. Attached instead.My personal Elio will have the open Indian fender option. I like your open rear wheel illustration very much. I wonder if the open rear wheel cover could flair out slightly and be designed to compliment the Indian style fender.
Another open rear style
http://www.elioowners.com/threads/morphic-studies.1773/page-4