I kind of think it looks a bit odd too...
But, we have to ask ourselves chaps - is this an age thing? :lol:
I remember the last time I saw Jethro Tull (years ago now, but it was still their 200th Anniversary or something), and I felt kind of cheated that Ian Anderson had switched to a headset at that time. One of the things I'd gone to see was the one-legged minstrel working the microphone. It was like most of his performance (visually) was gone.
From when I was playing live, I'm with 38th on the mic-technique thing as well - but I suspect that this doesn't matter so much? (Don't know though).
One problem I would definitely have had myself would have been that I liked to, er, make "utterances" during instrumenal sections. This could range from whooping or shouting obscenties at moments of high drama/ecstacy (I'd use distance from the mic to control how much clarity the audience got), to singing in the bassist's ear during blues songs, making up extra (rude) verses during the keyboard solo to try and put him off if it looked like he wasn't smiling or enjoying himself enough...
Also, I think the moving (or rushing, as appropriate) up to the mic from wherever I found myself on the stage added a kind "drama" for the audience. That disappears completely with a headset (witness my disappointment with Jethro Tull). And for vocalist only performers, imagine what Queen would have looked like if Freddie Mercury had used a headset live!
But, like I say, this could be an age thing. Rock and roll and how it's presented has changed.
EDIT: Missed the most important bit! So, if you think it will work for you and what you're trying to get across to the audience... then do it! :D