This layout is being used in quite a few offroad rock crawlers these days. I saw a Honda rock crawler competing a couple years ago with this setup.
The problem with it is that you end up with the driveshafts being gear reduced, and then you get another gear reduction when you hit the differential in the axle. SO, the whole thing goes really slow. Now, if you could get the fwd differential gearing close to 1:1, it wouldnt be a problem.
it works very well for the rock crawlers, where the whole idea is to go slow, but for a street car, it wouldnt work very well.
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