Although the concept makes my head hurt, I agree with you that this should probably be considered canon. And I like the idea of a challenge. So many of the background stories are filled with problematic holes that I can imagine it being great fun to work with them to see what might come out.
SPOILER
And OMG the Slythern prefect's speech was made of WIN! I've finally gotten through each house prefect's speech, and none of them are nearly as brilliant. Also, I ♥ Merlin's Slytherin aspect.