Is it OK to have heating registers and returns near the ceiling?
Physics dictates that for heating, on the walls near the ceiling is not going to be good for overall room heating.  However, depending on the structure of the house and location of the hvac system, they may be placed there to avoid long and convoluted runs of ducting which can decrease the efficiency.

Taking just the room into consideration you're going to tend to concentrate heat near the top and not heat the floor, much like in a lake you will have a distinct transition between the warm surface and colder bottom.  Ceiling fans are going to be a must to evenly distribute the heat.

So it may be the most efficient setup for that house, but it's definitely not the best setup as a general rule.

You're far enough north that heating costs are generally going to be worse than cooling costs.