[EricH]

I know of a team that had one--851 (no longer competing), in L.A. It worked pretty well. Not sure what other teams used that trick. (Sure was fewer than in 2002, by all accounts...)

You may want to make sure of 2 things:
1) If your hook detaches unintentionally, can you retrieve it or otherwise get it out of the way? Better yet, can you prevent it from unintentional detaching from the robot?

2) You mention a VEX wheel connected to a speed controller for power to the tape measure. How are you thinking of powering that; i.e., which motor?