And it does this because of the variation in atmospheric density with altitude, right?
So how come at sea level the atmospheric density is the same [assuming constant temperature and barometric pressure], and yet it still bends? (As you say it must for a horizon to appear)
All bendy light is going to do, is change the apparent position of the sun in the sky. As far as I am aware (I just came to this realisation) the horizon shouldn't be altered.
TO ALL: Remember, light does not need to be a light source. Everything you look at is either emitting or reflecting light. The horizon is a line where the sea/land reflecting light at you, and the sky reflecting light at you, meet. Do not confuse light sources, with anything that you look at.
Please answer me this, or correct me on what makes light bend. This realisation of mine could either debunk, or do nothing to your theory. It is in your hands.