Hey friends, I am going to provide a partial answer to my own question. I rec'd the above pictured mech-pencil today. I will not have the time to pursue this project right away, and will post a new thread when I do. So here are some initial observations:
The upper barrel is cylindrical, and appears that it could be disassembled, to be used as a tube for mounting a wood blank, with the idea of turning a nice looking upper barrel with a diameter the same or slightly larger than the finger-grip lower barrel. The wood barrel would require milling of two slots to allow the functioning of the clip. What is really nice about the retracting function is that BOTH the lead AND the thin metal support piece retract, leaving the next-step-up in size metal piece un-retracted. Thus no thin anything still sticking out to poke your shirt pocket and/or get damaged. I really like that design. I have not had a mech-pencil for many years, so I do not know if this method of retracting is common to other mech-pencils, for example the ones shown in Duncan's post above. (Those are very nice, BTW.)
The upper tube measures about .334"diameter, the lower .381". So with thinly turned wood added to the upper barrel, it would result in nicely balanced aesthetics for this conversion of the Pentel writing instrument.
I lived for about 40 years and on three different islands in Hawaii, and have acquired and saved some pieces of the MOST beautiful curly Koa anyone has ever seen! That is what might appear on this project, if I can dis-, and re-assemble the writing instrument without destroying it.