Sheldon Brown mentions this set-up briefly. It seems like a workable solution to me, and I did it on my mtn bike today. The alternative was either the magic ratio, a tensioner, or an Eno hub. I do not want to do the magic ratio - too limiting as I will sometimes pull an 80 lb trailer. I cannot do the tensioner, bc I want to ride fixed in the winter, and I will get a wheel with the Eno hub if I need to.

For now, this solution seems perfect, and I cannot figure out why more riders aren't rockin it. Worst case, I bend or bust a skewer - $10.

edit - see below -- busted a skewer

Quote:
I used a more drastic solution: on my Bianchi Osprey. I cut the rear axle short so that it didsn't protrude past the surfaces of the locknuts. Thus, only the quick-release skewer went through the dropouts. Since the skewer is quite a bit thinner than the actual axle, this gives me considerably more adjustment room.

If the skewer is properly tightened, the axle is held in place by the friction of the locknuts being pressed against the inside of the dropouts. If this were not the case, horizontal dropouts would not be usable, since the forward pull on the chain creates a larger force against the axle than supporting the rider's weight does. Just to be on the safe side, I carried a spare skewer along with my spare tube