My biggest issue with this method is the fear of a thief not realizing how difficult it is to bend or cut a wheel and destroying it in attempt to get it through the rear triangle.

What I usually do is put the mini u-lock through the back tire and one of the seat stays. You have to angle the lock a bit, but I found that it doesn't take up much more of your lock than Sheldon's method and you get the added benefit of actually locking the frame.

Edit: I should add that my IRO Jamie Roy had clearance for large tires, but is equipped with 23s so there is plenty of room to do this. It may be different with larger tires or tighter clearances.