Thats exactly what I used from day 1. It needs bigger screen, and thats the only drawback at my point of view. Very happy with setup overall. If I would do new tank, I would do same design again - no doubt.
In my case waterfall takes start directly from tank overflow and goes in to the back chamber, so eliminating one additional container. No problems with leveling as overflow comb evens up any small unevenness. Not a single pipe used as well (except return pump).
Take a look :
viewtopic.php?f=2&t=1242