Recessed 12v Lighting - Transformer
Yes, it would work. Just remember that 12v systems will consume more current than a 110v system of the same power (watts). This means that cables need to be thicker.

The advantage is it would be safer in terms of electric shocks. Also, at least in the UK, wiring regulations for mains is even tougher than for domestic installations, and legally only an electrician can make modifications. Although, precautions still need to be taken since the 12v system would still be capable of causing fires, so good automotive wiring practices should be followed (including using appropriate automotive cabling, sheathing, connections, and so on).

Does that answer your question?