Thanks for jumping in Steve
not only, but that's teh way many many people in south america grow these plants (since quite a long time already). Casually, it seems that europeans are kind of discovering this now too... in teh last few months I have seen more and more hints in european websites to grow these plants "sitting on water trades". Even the main orchids magazine from Germany (Die Orchidee) published an artikel about growing Ctsm. pileatum this way (against all recommendation every body has always heard about not letting the plants to sit in water for a long period).
Lars, re-potting every 2-3 years is ok. However, I (and some friends in South America) have found that many Catasetinae actually like staying in the same pot even longer (they like descomposing wood!) - however, I must admit you would need to supervise closely in case any troubbles start....