I have a friend that did that. They didn't use their living room, so she turned it into a fabulous sewing room. I am so envious of her. Her husband builds cabinets for a living, so she got these great cabinets and a wonderful window to look out when she's sewing. They did put in a wall with bi-fold doors, so she could close it to hide the mess. Why waste the space when you could be using it and enjoying it so much. It's your house for your enjoyment, so you should use it the way your want to.
Our youngest child is handicapped. Several years ago we remodeled a room for him and moved electric outlets and switches up so he couldn't reach them. We had a bed and cabinets made (by my friend aboves husband), special coverings for the windows and installed a dutch door. My mother-in-law told me that it was going to make our house hard to sell. What she never understood was we remodeled the room for our son's safety and enjoyment. We did that almost 10 years ago and I have never regretted it.
GO FOR IT!!!