Your design is absolutely possible and a very good design too boot!
This EXACT design is made by several companies for sale at pet shops and online and such. It works extremely well if you have the right sponge material for it.
Either way you run the airline into the tube is ok, but the flow will be better if you run it into the tube from the side at the bottom.
The uptube should be no closer to the surface than 1 inch. The bigger the aerator, the better (to a degree).
You can actually purchase uptubes for undergravel filters at the local fish shops for cheap. Get the larger tube if you plan on making a large unit.
I really like these spongefilters. however, you will need several or more of these (or one very large one) to operate a goldfish tank with any kind of efficiency. But these work great for fry tanks and tanks that needs little circulation such as planted tanks and the like. They also make great additions to tanks that already have a filter but some extra biological filtration is needed.
Hope this helps!