I think it would probably work fine as long a there isn't copper. Iron/rust isn't a problem, as there is a naturally high iron content to most bogs. In fact, they used to mine iron from bogs there was so much of it.

Copper is a different story. It can be damaging to plants.

Here is a link that might be useful: More about Bog Iron...

Why not? Sounds funky!

You could also set it into a legged frame and have it in a nice display on the patio or whereever and actually not close off the drains but use a loose fitting drain plug so that the water will leak out and you could collect it. That way you could flood it and when it drains all out flood it again or even let it dry just a tad! Drainage is important in the bog!! My Sarrencia psittacina is only in a one gallon pot that I flood and it drains out and it is doing great. (will get around to images soon i hope!)
Plants that like it higher in the sphagnum such as VFT will do very well and you could even vary the height of the media using rocks or what have you to make the surface uneven so that the lower spots will stay wetter longer.