It would probably be worse from space, actually. This was imaged at the diffraction limit of the telescope (~λ/D where D is the diameter of the mirror) and Gemini has an 8-meter mirror. We're not going to put an 8-meter IR telescope in space for a long time. Even JWST is only 4 meters.

Is visible light interferometry possible with multiple small reflectors in orbit?

It is, but the limit is your ability to cram it all that in a single rocket. It's why the James Webb needs foldable mirrors (JWST is made of small mirrors stuck together basically).

There have been a few proposals for in-space interferometers, but budgeting shot them down for the most part. In hindsight they may have been cheaper given the ballooning costs of JWST.

That's very interesting, didn't know that. Thanks.