Perhaps it would be good to give shield a different att / hp like flying weapons. It would also be cool if they retained their damage reduction and / or ability somehow. I.e. lightning bolt would only deal 2 damage to an animated diamond shield. Thorns shield should cause poisoning on ingestion. Phase shield becomes immaterial. Etc.
Giving life PC in general will definitely have a big impact since that is one of its shortcomings right now. The upgraded version should probably be a good deal more expensive though, or dark users will start screaming about balance vs steal.
Lastly, I agree that fractal might make this a little OP unless it churns out something innocuous instead of the original permanent. Consider what would happen, for instance, with SoL -> Ubber life stall.
Overall though this looks like a cool idea.
Has potential to make some fun air / life rainbow decks (sword and shield anyone... could be a fun tournament).