the only thing wrong i can see would be the cost efficiancy.... if you were using just 1 panel high (approx 4-5 ft) a dog would clear that without breaking a sweat. if you were to go 2 high then it would just be cheaper going with the kennel set up.....

ive been thinking about above ground pens as permanent housing for dogs lately..... the blueprint of those are approx 250$ ive figured so far.......

if you have a tractor supply you can find the panels pretty cheap (my local has them for $22 a piece), 4x4x20 are about 7$-10.

so you should be ble to build a kennel in under $325.....which isnt bad...