I suspect there is a misunderstanding here. Please, give a detailed example.

What does "10 times the keyboard will light up " mean?

Well if you use the combination of shift + letter 10 times the keyboard will light up 11 keys holding down the shift key. I'm not sure what the visual value of 11 keys lit up is.

Please elaborate!

Which means for most users half the keyboard will light up and thus the visual cue you request is lost.

Lowlander wrote:What if you also have Shift + F?

Then when you hold down shift, with your finger, on your physical keyboard, you'll see w and f in red the rest of the keys are grey (you are now watching the the "shift" state) when you let go of shift key the layout will show the hot keys that don't require shift, ctlr or alt.

What if you also have Shift + F?

This feature would make it very easy to find a suitable hotkey. Also finding available hot keys right next to each other is very convenient for many function, you know, go left, go right, up, down, and so on. This would visualize it very quickly.

"When shift, ctrl or alt, or combinations thereof is pressed, show the layout for that state."

Ok lets, for the sake of simplicity, say the only shortcuts you had were:
q
shift w
ctrl e
alt r
ctl+shift t

Think of these as being four different states (i.e. four DIFFERENT views of the keyboard layout displayed on the screen)

When you are not touching your keyboard you are in state one. All keys are greyed out except for your q key which is red.

When holding down shift on your keyboard the displayed keyboard layout changes to state two (shift state if you will). All keys are greyed out except for your w key which is red.

And so on.. I'm sure you get the idea.

I'm not sure how you envision this, but many keys (like Ctrl and Shift) are used in many hotkey combinations. This would be impossible to visualize for all applied hotkeys.

Anyway in my opinion this is not a feature I'd care for.

I am a big fan of showing things visually. Since a computer is a visual contraption, why not take advantage of it? In this case I think Hotkeys under Options could be better.

THE PROBLEM: IMO finding an available Hotkey for an action takes too long.

A SOLUTION: Visually display a keyboard layout (users chosen language in windows) on the screen when you click a button.

Have the available/free Hotkeys greyed out. Have the ones that are in use be for example red.

When shift, ctrl or alt, or combinations thereof is pressed, show the layout for that state.

Make it possible for the user to see his custom Hotkeys and the default Hotkeys by using two different colors (other than grey and red of course) by way of a tick box.

If the all mighty user wants to use an available Hotkey for the highlighted action. All he has to do is press that key or key combination and the Hotkey shall be created (maybe with a confirmation box).

A print option should be granted to the user, so he can hang this magnificent keyboard layout and actions list artwork on his wall.

What do you think?