without going through all the points in your hypothesis, there is a couple of points I would like to clear up. The first point is how black holes form.
A black hole forms when a stellar bodies mass falls below its Schwarzschild radius
"Schwarzschild radius is the radius of a sphere such that, if all the mass of an object is compressed within that sphere, the escape speed from the surface of the sphere would equal the speed of light. An example of an object smaller than its Schwarzschild radius is a black hole. Once a stellar remnant collapses below this radius, light cannot escape and the object is no longer directly visible. It is a characteristic radius associated with every quantity of mass."
http://en.wikipedia.org/wiki/Schwarzschild_radius
the link above has some calculated values for you including the milky way, as you can see its the density of the mass not the amount of mass that is important. Our Earth for example is also included.Now as for the Universe being inside a black hole well there have been plenty of models that have tried to show this as a possibility.
One essential problem however is inherent in those models. To define that I will have to familiarize you with two terms in cosmology.
-Homogeneous meaning no preferred locations
-isotropic meaning no preferred location.
the description above
"However if the observer is allowed to extend his test area he would find he is being stretched as his feet are falling faster then his head."
is a preferred direction
"In addition while falling in a black hole we are allowed to move in all directions but one, we can not go up. We may be able to fall zero distance if we access all the energy of the universe to do so because we would have to follow a light path at the Schwarzschild radius."
again you indicated a preferred direction as well as location
Universe from black hole models usually suffer this problem of having a preferred direction and locations, our measurements and observations strongly agree that there is no preferred direction and location (homogeneous and isotropic) expansion redshift measurements also agree with this rule.
the other problem is that BH's typically rotate, that rotation would impart a rotation upon our universe, a rotating universe cannot be homogeneous and isotropic.
Poplowskii's universe inside a BH is one such rotating model where he uses spin and torsion.
http://www.nikodempo...blications.html
http://arxiv.org/abs/1007.0587
reviews I've read on the model generally point out the homogeneous and isotropic problem, though I can't locate the reviews atm
I should be clear though that this doesn't preclude the possibility of our universe being inside a BH. Its merely pointing out some of the problems associated with the BH cosmology models. Science is like that
[crackpot link deleted]
unfortunately I couldn't locate an arxiv paper review however as you can see from this paper that there is numerous problems and issues to be addressed