Is caching the layout wrapper template a viable option? I've been thinking about creating the simplest possible cache solution and would like to know if this is a worthwhile option.

Using the outstanding cacheflag plugin, I place the entire layout wrapper template inside these tags:

{% cacheflag flagged "content" globally using key craft.request.path %}
 ... lots o code....
{% endcacheflag %}


In the back end, I flag each of the section with a "content" flag.

I think by doing this, each url should have it's own cache file. And all caches are cleared whenever a new entry is posted.

Granted it may a bit of a sledgehammer style solution, but if traffic is average it could perhaps be effective?

Is my understanding correct or is this a bad idea?
In my opinion it's a good, easy and fast way to caching content. We use similar solutions on different Websites and it works perfect for us. Maybe you should do a more specific flagging to avoid deleting all cached entries at once. And you should take care about possible dynamic code parts like forms.