I've tried essentially this a couple of times. I've never made a particularly big fortress with it, but it was quite fun. Here's what I've learned:
- The start is super hard because there is no place to put anything and there is a tendency to try to avoid building central spaces.
- At the beginning you've got a few dwarfs doing everything and it's hard to know how to split everything up. Later you have one or more dwarfs doing each thing, but now you have to "refactor" your spaces. So you might have a dwarf brewing and planting and weaving, so you feel like putting all that stuff near him, but later you have a dedicated planter, so you feel like you need to move all that stuff where they are.
- Dwarfs have families and the families do not necessarily have compatible skills. So the brewer might be married to the weapon smith.
- Interestingly, I found that I had no trouble keeping dwarfs where they are supposed to me. If I put their bedroom, dining room, private altar, and workshop all in the same general place, the dwarf stayed there for the most part. Since I kept families together, this gave lots of happy thoughts of being with family. I *also* got a lot of kids being born -- however, I think that mostly happens near the beginning when husband and wife migrants have similar sleep schedules. Not completely sure. But one of my dwarfs had something like 7 kids -- one every year!
In the end, I really liked it. I've done 3 fortresses this way and have abandoned when I've decided that I had too many hard problems to solve and needed to start again. My current thought is that it's best to plan right from the beginning to have central spaces (right in the center, possibly even with a central staircase ;-) ). That allows you to do the normal "dump everything in this room until I can sort it out" thing and later turn it into a tavern or something.
I found that having wheelbarrows for as many of my large feeder stockpiles as possible was really useful. This limits the number of haulers from that stockpile to 3. The idea is that if you chop down a tree and have 20 logs, you don't want to have 20 dwarfs running out to pick up logs because that puts a lot of them in the wrong place. Even with restricting hauling types, this really helped me a lot. I decided to avoid burrows because having quite a lot of experience with them, I think they are more hassle than they are worth in normal cases (I once created a fortress which was divided into groups of 7 dwarfs. None of the groups met the other groups. I wanted to test how friend making was working -- it doesn't. But the short story is that burrows don't work the way you want them to for that kind of application and it's just not worth the bother).
I really got fond of the idea of every adult dwarf in the fortress having a least 1 workstation. I even assigned the workstation to the correct dwarf and labelled it. Thematically, it was very pleasing and I could set up shops, etc, that made the fortress seem a lot more alive to me. For me, this is the driving force rather than efficiency. I don't know much about efficiency anyway, because I play with small fortresses at low FPS (I intentionally set it to 20).
Looking forward to hearing more updates if you decide to do it!