One problem with this is, you have to be able to disarm it. If you can disarm it, so can a thief. Sure most thieves would not bother to look for booby-traps.... but those who are familiar with the device would look for it, and may simply remove it. There is a good chance the bike owner will set it off more often than any potential thief. It takes time to rig up the trap, and you have to keep buying explosive caps.
I think a better and safer solution is to have an extremely loud piezo-buzzer type alarm (like fire alarms) and a battery pack that you bolt to your frame, with a motion detector. Any bit of movement would set it off, it would ring for 5 minutes and maybe stop if left alone. You could arm/disarm it using a small remote control you carry with you. This could also be integrated with a cable lock that acts as a continuity detector. If the cable is cut, it would also trigger the alarm.
A combination of this piezo alarm/cable lock with remote, along with a separate U-lock to tie up the wheels to the frame and whatever post/tree/bike stand you're attaching it to, may also help.
Either that or just get a shitty bike, or a good one and spray paint it or put stickers all over it so it looks old and crusty. Or just don't leave it unattended somewhere. Honestly it is almost impossible to stop these guys, unless you create a "honey pot" scenario and wait and be prepared to confront them and beat them up. Then you'll be the one to get arrested for attacking someone. The police don't seem to care and it is on the bottom of their priority list, which is why it is such a big problem.