Ran the simulations in Python. The HTML version of the Jupyter notebook viewable with an browser is in the ZIP archive. I will add my explanations later when I have more time.
Yes. As expected, the unstable filter blew up. Also, in this case it is simply not possible to implement pole/zero cancellation. It is because the correction filter processes the electrical signal, and the room effects are induced by the room in the acoustic domain. The idea is to pre-adjust the electrical signal to compensate for the room effects. The correct filter acts alone, and if it is unstable, there is nothing to stop it from blowing up. The room effects the correction filter was to correct are way downstream. The filter and room can't "work cooperatively" with each other (i.e. for the room zero to cancel the unstable filter pole) by having the room inside the feedback control loop, which is how typical control systems are constructed to correct for errors.
Regarding whether or not room modes are minimum phase (MP), they aren't. They sort of behave like MP, but Dr Earl Geddes, who has a PhD in acoustics, said this:
John I had not thought about the electrical filter situation, but agree that the same thing could occur. And different decay rates of the other modes is a good point. In school we did a calculation of a coupled room where the coupled room was very low damping and the main room was highly...
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