Normaly you can convert a bike w vertical dropouts to IGH by using a eccentric BB and a "half link". If you use a chain tensioner I think you can not use a coaster brake and for me one less cable would be one of the reasons for going IGH.
It all depends how and where you ride. Personally I am thinking of getting rid of the front der and two chainrings on my 24 gear folder for simplicity. Also thinking a lot about going IGH on it.
Edit: What I did on another bike I converted to Nexus7 was to grind down (angle grinder, watch your fingertips) the anti rotation washer(s) and put it on the
innside of the fork, where the hub is. Then you need another washer same size on the other side. On some (newer) hubs there is a anti rotation washer on both sides. In that case you grind them booth down to the right size.
I did a older Nexus7 and bought the Shimano Alfine 8 Speed Fitting Kit
CJ-8S20 cassette joint unit http://www.practicalcycles.com/userimages/procart90.htm
I can not remember if I used the blue or the green. The important thing is to use the OPOSITE one of what you would normally use since you put it in the innside instead of on the outside of the dropout.