With both replication and DTS available, I haven't even thought about this kind of thing since the days of MS-SQL 6.5! There's no reason why you can't do it, but it is a waste of energy... Both replication and DTS are drop dead reliable, and simple to use.
Yeah, I'd have to take issue with any statement saying that Replication or DTS are drop-dead reliable and simple to use. They are each a melange of technologies that rely on many different services to operate correctly. If any quirk occurs in those services then they go down like rocks and they are hard to debug. I don't like them because they have so many points of failure.
If it's not practically useful, then it's practically useless.