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2 reasons I can think of not to hook up the OD that way:
If your 4th gear switch fails, the worst that will happen is the OD won't engage. If your reverse switch fails, you run the risk of destroying the OD.
Secondly, depending on which reverse switch you use (on top of the tranny or on the side), the switch won't actually activate until after it's completely in reverse. That means you still run the risk of damaging the OD if you let the clutch out at the wrong point while shifting into reverse.
As far as what someone said about using a backup switch, I'm pretty sure they were saying that the physical switches them selves (back up and 4th gear) are the same. The switches that go on top of the transmission are the same, I can't say if that's the case for the reverse switches that go into the back of the transmission.
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http://dylans122.blogspot.com
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