well, I think it will look strange, but that's an awful reason not to do it.

It will work, but with one caveat; on the pacer (which has a more 'road' position' I assume) your weight is evenly distributed between your hands, butt, and legs. This actually adds a good bit of suspension to the bike, and makes it a little less jarring to go over bumps and such. When you raise the handlebars, you are shifting more weight on to your butt, eliminating the 'shock absorbing' effects of the stretched out position.

This is no big deal, just make up for it elsewhere on the bike. There is a reason most Dutch style bikes have giant balloon tires. However, the Pacer, being road oriented probably doesn't have clearance for the type of tires I would want for a Dutch style bike. I'd start at a 35mm tire and work your way up. I think a Pacer can clear a 32, maybe...

I'd keep your Pacer as a faster, more sprightly ride and buy a new project for a dutch style cruiser. It's always a good idea to have more bikes