I've done four of these 3+qt/lb mashes now and I don't see any problems with conversion. It might take a little longer, although I haven't really "raced" two batches side by side so I can't say for sure. It certainly makes it easy to step mash when you have this much water at your disposal. I've done one of those, the rest being single infusions.
My hope is that the extra water and soak time helps extract more flavor from the grain while the starch is converting. even if is no different though, its a pretty simple way to go. Not that a sparge is some big hairy deal, mind you, but this way you just heat water once and go with it.