I have included a current limiting 75 Ohm resistor on every LED in this design (maybe it is indicated a little small). This way the whole ceiling can light up without using multiplexing (and thus loose brightness).
Oh, I see. I didn't know they were resistors...
Why is it exactly that creating some patterns using shift registers won't work?
You can create patterns but PWM simply isn't going to work across that many rows with shift registers.
Are they not fast enough? Is the micro controller not fast enough?
I would love to trust you on your word, but I just don't understand why it shouldn't work
I'm not saying it won't work but you don't have enough CPU cycles to do a decent PWM on a matrix that big. I'm already worried about what the overall brightness will be like with 17:1 multiplexing.
I suppose you could limit yourself to having only a few different PWM brightness levels but is that really what you want?
Those WS2811 boards cost less than 30 cents each and would really make a difference to overall brightness and PWM effects. You could devote the CPU power to pattern generation and music analysis instead of just multiplexing.