I've used it.
I started a PHB bard and wasn't very excited about it. He seemed underpowered with no hope in sight.
So I convered him to a Monte Bard. Honestly it's not much better. More skill points, but the songs are weak.
The real problem IMHO with the Monte bard is that you end up being cut off from all other material. Epic progressions, splatbooks, etc. - none of it works because you're different now and not a typical arcane caster. I see this as a problem. Frankly I'd suggest borrowing a few elements maybe, but wait for 3.5 to see what they do to the bard.