I think this should be allowed. And that the players cut are considered DFA'd. I just chose to cut mine now so the guys weren't totally swamped at the actual cut down. I can't see it being a hassle, the only difference is they have to type the dumpster trash name in instead of cut and past.
Feel free to go dumpster diving in my roster... Alex Rodriguez, Andre Rienzo, Colby Lewis, Dustin McGowan, Edward Mujica, Jeff Locke, Josh Beckett, Juan Nicasio, Matt Magill, Tommy Hanson
MiLB: Miles Head.