I did. I still do this, but with a 1080p. But previous config was pretty much what you are talking about, and it worked beautifully.
I used as "dual monitors" in the 720p config, with the MBP as the primary. I also had the 32 inch 720 rotated 90 for editing docs, and the MPB handled it just fine. I moved just about the time I got the MBP, so I was able to change to my Sony 48 inch 1080p, which I view from about 8 feet and use wireless keyboard and mighty mouse. Love it!