It should work just fine, although you will have to get used to the manual focus lens, and ensuring the tilt/shift are set correctly (and havn't been bumped !)
I currently shoot with a DS3 and Tilt shift lenses to do exactly what your proposing, although I use the 24 Mk II, the 45 TS-Eand the 90 TS-E depending on what I'm shooting.
Using the shift lens, I always shoot with he camera perfectly level, in portrait mode, and then adjust the vertical shift to compose for sky or ground.
Rotation is around the entrance pupil, using a combination nodal slide/rotation base from RRS.
Single row pano's are done this way, sometimes using tilt for near/far focus, often not. Multi row pano's are shot by shift down, do a row, shift middle, do a row, shift up, do a row. (or some combination of that, depending).
Corrections are done in lightroom, and Sitching these is dead simple for any decent pano software, previously I used PTGui, but mostly now I use CS5 to do it and works just fine.
I find this produces sufficient resolution for 20"x60" prints.
Most stitched pano's are done with either the 45mm or the 90mm. If longer is required, I'd use the 70-200 f4 which also works quite well.
Regards
Mark
Regards.