I'm not your man for multibooting Tony, simply because I prefer dedicated boxes for different OSs and like to administer them via each box's X server/ssh etc
For every taste there is a colour though so back to your question:
Would still be great if someone could comment on the disadvantages with having Chameleon on OSx root (especially in terms of updating/troubleshooting a kext gone wrong etc).
Have no fear + get going with Chameleon on MacOS X partition, as long as you keep your /Extra clean + tidy, you won't see any hiccups. Later, when you have your setup ready you can re-evaluate bootloaders.
btw: boy do you sound adventurous, abusing a poor toy-like 2.5 HD w/ 3 different filesystems
btw2: prime example of a thread that makes sense, searching, following up, editing etc. Welcome