Ahh really and you are being totally realistic and reasonable, yes? An orion like you described is not going to happen. There is no money and no political will to do that. I would like it, but it wont happen.That's because you're absolutely barking mad. That is no way to do space colonization...
Bigelows inflatable space habitats are the next best thing. You could also build slightly bigger versions of sundancer, based on the same principle. The current design is meant to be launched by the Falcon9, which is not a heavy lift launch vehicle. If you had a bigger launcher, you could launch bigger modules. I would have to do the math, but I could easily see a module having a diameter of 12 meters or so (twice that of sundancer).
With a sundancer module weighing in at about 8.5 tons and a (e.g.) a Jupiter being able to lift up to 90 tons, even bigger modules might be possible (anyone care to do a crude calculation?).
The idea of the inflatable ring space station is not new. It was actually propagated by von Braun.
Sundancer modules actually do have very good shielding and are more durable than the modules of the ISS. Von Braun visioned an outer shell to be attached to the inflatable modules at some point. So one might be able to make the modules even more durable.