Yes. I do something similar.
For Example:
Let's say I record a raw vocal track. I do not route it to any output in my daw. Instead, I have an FX track created that has a VEP audio Input plugin connected to a channel in VEP Instance. I then use whatever plugins I want and send the output back. I then assign that VEP return to an output channel in Cubase that is not routed to anything. I use that output as an input to an analog track in cubase. It sound like a mess, but this lets me do whatever I want to my vocal track, and then bouce it to an analog stem. That is not necessary, but it is my workflow.
I stategically hide the VEP return and the FX channels from view in my mixer. It declutters stuff a lot, and I really dont need to see them as they are just pass through. I could do the VEP input send right from the vocal track, but by doing it this way, I am basically creating a channel strip that i can route multiple tracks through. I set it up this way for flexibility.
I basically use the same model for my Send FX.
Of course, if I could use the VEP Input plug it like a true insert, then all that could be avoided. But, doing it the way I am, running VEP on local host, lets me do incredible amounts of processing while maintaining low latency and barely moving the needle on my Cubase performance meter. It is why I can get along fine with a single machine. The magic is in VEP.
That said, I have come close to buying Waves Soundgrid servers to host my Mercury plugs, but I do not beleive I will get the low latency I am getting with VEP running as a local host. The only thing I would really gain is the ability to do Insert FX like normal. But, I am then limited to just Waves, additional layers of complexity, etc. Also there is the cost avoidance thingy. It is always nice to have more resources for adding additional instrument libraries. ;)