Making notepad with arduino

Hi.I have an idea.Is this possible to make a notepad with Arduino.Something like connecting USB keyboard to Arduino and use TVOut/VGAOut to see the text and then save it on pendrive/sd card.Is this possible?

Newbie here so throwing myself into anything and everything....

2K of memory on the board itself would surely be too restrictive to write a notepad type app. Even if you could pull off the app itself in that space, when the user starts typing more than a few characters you would run out of space???