Yes it will work, and quite nicely indeed. But you need to be careful.

Currently ZFS mounting is not "instantaneous", if you have like say 30000 
users, you might be for a rude surprize as system takes its own merry time (~ 
few hrs) mounting them at next reboot. Even with auto mounter, things won't be 
so fast.

ZFS philosophy of "helluva tons of filesystems" breaks a lot of tools made with 
assumption of "who would ever need more than 4 filesystems ?".

To test it, create $NUM_USERS filesystems, reboot the server and see if 
everything comes up ok and in acceptable time.
 
 
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