Yes, exactly. AR have single fire damage that is good enough later on, with all the critical perks and you can still burst for big groups. You should definitely consider Survival Instincts so that more of the individual shots crit.
The only thing I see with your idea is that the setup is pretty much the same as for an AR burst build, so apart from conserving ammo, most of the time, the burst should be strictly better.
You could do a similar type of setup for SMG and use the Steel Cat. Overall less punch of course, but DEX reduction would allow for more individual shots. But requires closer range.
