Powerbook suddenly died, attempt to start power on, no bong, no screen, no drive sound. Charger shows green light, battery...

That is correct, normally you can't select the CD drive in disk utilities if no disk is inserted, but oddly enough when I had the hazing problem the CD drive did show up in disk utility even without a cd in it which prompted me to select erase CD, and the hazing instantly disappeared. I can only assume that somehow the CD drive retained residual memory/ghost image which caused the anomaly. The problem never returned..weird science..

I had similar problem with my powerbook showing cloudiness and a weird rainbow effect of colors. Checking the LVDS cable all seemed ok, then I recalled that the problem started without regularity after having used the the CD bay with my startup disk. Making sure that no cd disk was present in the bay, I then launched disk utility and selected to erase the CD disk drive, instantly the hazing rainbow effect resolved itself and the problem was fixed. I can only suppose that the CD drive had retained corrupt memory somehow which conflicted with the resolution of the display. Odd, but the above worked and problem never came back.