I think it'd be handy, but not particularly practical - depending on how modular the FSO code is now, I expect there'd probably be an _awful_ lot of redundant code to either strip off or pull out. So much so that it could well be quicker to hack in DDS support for modview. :\
OR just plain old conversion to POF (PCS - BSP recursion error strikes again!)
If that error is occuring, it means there's an error in the geometry that should be fixed - not that PCS is less powerful than modview when it comes to converting. In fact, in the few experiments I did, modview's cob-pof generated meshes with very faulty collision data, if it generated any at all.
Modelview works pretty well for me, but it seems to have massive memory leaks and can eat up several hundred megabytes in just a few minutes, especially in the pof editor mode.
Yeah, the memory leak is considerably worsened by the high limits version, but it rarely becomes unusable for me. Does it for you?
(That said, I do have a special separate extra high limits build for just one particular model that will eat up over 1.2 gigs of memory and begin to chug my machine in short order while pof editing.)