It worked out great. It was easy to tuck the sheets in, they are fully washable and I can change the color on a whim.
I ordered silk pillow covers from Oriental Lifestyle. They came all the way from Thailand and were only $27.99 for the pair! Also included was a sweet card wishing me a Happy New Year, and inside it said "With Love." I was touched.
I adore my new pillows and slip cover! I may order more pillows when budget permits.
For now I have a shoji screen hiding my air conditioner. It was way too much of a pain putting it in to take it out for the winter. The screen is also providing draft control. I like throwing the curtains over it during the day. I really want to redo this screen by painting it white and replacing the rice paper with fabric. But I am way too lazy, I can't imagine that I'll ever get to it. For now I'm thinking of just hanging some lights on it.