Hi Brent,
The loopback is used because it is an interface that remains up regardless of the physical layer, so provided that appropriate routing is in place, the lo address will be reachable through the physical interfaces.
Best practices on the top of my mind should include looking at the release notes for the software version you're using, check network requirements and compatibility matrix, interworking, caveats, and reserve time for testing.
I'm sure you'll be just fine
hth