Magento - Display all products in Homepage with pagination

A client asked to create a Magento shop with Art Gallery like functionality. What she want is to have a product list in the homepage having pagination. Let's get it on!

• In the backend:
  Manage Categories > set the default category to anchor:yes, then assign all products in this category
• CMS->homepage > put this snippet in the layout update xml

<!-- ########################## DISPLAY ALL PRODUCTS IN HOMEPAGE ############################ -->
<reference name="content">
<block type="catalog/layer_view" name="catalog.leftnav" before="-" template="catalog/layer/view.phtml"/>
<block type="catalog/product_list" name="product_list" template="catalog/product/list.phtml">
<block type="catalog/product_list_toolbar" name="product_list_toolbar" template="catalog/product/list/toolbar.phtml">
<block type="page/html_pager" name="product_list_toolbar_pager"/>
</block>
<action method="addColumnCountLayoutDepend"><layout>two_columns_right</layout><count>4</count></action>
<action method="setToolbarBlockName"><name>product_list_toolbar</name></action>
</block>
<update handle="page_two_columns_right" />
</reference>