Absolutely the way to go. We run loads of Pi's like this; older ones with an RO SD card holding the boot (so never get corrupted), later ones using the built-in PXE loader. Excellent for development as well; never be scared of doing a hard reset or Magic-Sysreq (this goes for PC's as well as Pis).
It's unfortunate that the built-in watchdog doesn't work during boot and shutdown, so a hang at these points won't be recovered without cycling the power. This can be addressed with an actual hardware watchdog connected to the P6 header (so if it's not being poked every so often, it does a cold boot).
The main issue for most home users is DHCP; normally the router provides DHCP and a lot of them are not compliant with the spec (making it tricky to set up a second DHCP just for netbooting). The solutions I know are using a separate network, or running your own DHCP for everything (my preferred solution).
It's unfortunate that the built-in watchdog doesn't work during boot and shutdown, so a hang at these points won't be recovered without cycling the power. This can be addressed with an actual hardware watchdog connected to the P6 header (so if it's not being poked every so often, it does a cold boot).
The main issue for most home users is DHCP; normally the router provides DHCP and a lot of them are not compliant with the spec (making it tricky to set up a second DHCP just for netbooting). The solutions I know are using a separate network, or running your own DHCP for everything (my preferred solution).