That's basically the way I set it up in mine too.
I, too, am in the "Yes in a heartbeat!" camp. As for "defining" it, I think what we need are some examples of Far Realm critters, places, and processes coupled with ideas that make it clear that the examples are only examples and not by any means the "truth" or even close to a whole picture. As an example, I remember reading a thread in the WotC forums some time ago about layers of the Far Realm, wherein people posted ideas for individual layers. Nearly all the ones I saw were superb, but as different from each other as night from day- frex, one was like a farm where meat is grown instead of plants, whereas another was like a particularly twisted extension of the Infinite Staircase. And some of the most interesting ideas were predicated on the fact that, as the people behind Legends of Avadnu pointed out, the Far Realm contains caustic Good as well as caustic Evil in its infinite insanity.
I suppose what the above boils down to is that, for me at least, something like the way they did FC1 could work really well. That's particularly since nothing is known about "movers and shakers" in the Far Realm (i.e. entities analogous to archfiends or celestial paragons), so those could be defined (or not) as the authors choose without really forcing anything or making a big fuss like the whole "demon lord CRs are too low!" thing.