Of course it can work, the trick is to know when it's a good idea or not! Personally, IF I can to move a Chain Myrmidon to the back of an enemy TAG (16 points of miniature against whatever) and I have a hacker nearby, I have effectively cornered the enemy TAG (not to mention that if I have an SMG trooper nearby in Sup Fire...) into risking a lot to use the TAG, while I'm "investing" for example a 21 pts Mk2 AHD (usually in TO state...) plus 16 pts Myrmidon and maybe 10 pts mk5 FO (or worse, the Mk4 HRL has LoF to the TAG); granted I can ARO with only one proxy at a time... but I will ARO with the Hacker and the Myrmidon on first activation, and if the Myrmidon dies (CC 24 Vs whateve the enemy has at -3...) then I will shift to wrecking the TAG :p
From the moment you succeed in engaging the TAG with a low point high CC mini, you have essentialy locked it out of the game and you can proceed in cleaning his supports without bothering about the TAG. I mean, you don't even have to try to kill it at that point, just use your orders to win the game (mark objectives, kill specialists/cheerleaders ...). The opponent will start his turn with his TAG unavailable. He will have to use his own orders (and you probably depleted them a bit already) either to try to break free from cc with low chances of success, or shoot at the cc hoping to kill it without damaging the TAG - but the melee has probably ch, ch:to or odd (like your myrmidon). So in my opinion, stealth allowing to engage without any ARO as long as you only do short moves is already very strong - you don't really need to do anything else to lock your target into a lose-lose situation. The problem here is why you were allowed to send a stealth mini in the back of a TAG to begin with.