Sound about right to me, Im just not sure about how collisions will work though.
Also, keep this in mind, its very applicable for 2D games.
[Clipped ofrm the manual]
If pan and tilt both are 0, but the roll angle is nonzero, the sprite is always perpendicular to the camera. This is useful for spherical objects, like fireballs or explosions. For an angle to be nonzero it's sufficient to set it at a small amount, like 0.01.