Hi Chad
Yes - that could work for some customers. Mine wanted 9 products per page, with three products per row, creating a 3 x 3 grid.
The other problem is taking a thumbnail image as say, 10kb filesize, if you're displaying 300 products with their images you're looking at the customer waiting for almost 3Mb of image downloads aside of any graphics etc needed for the site's template.
My customer wanted her clients to be able to page through results or, via an explicit link, to allow her clients to view all products within a category. Remember - the customer is always right until proven to be skint!
Also, in terms of user friendliness, my Missus will happily browse scores of pages of jewellery and note that particular pieces she likes are on pages X, Y and Z - she can then go back to those pages and take another look perhaps more easily than whizzing up and down the same web page.
I'm sure your solution will come in handy for certain applications however.