Absolutely, though I imagine not every single citizen of Daein would be swayed. Riots could break out, perhaps a civil war...
I imagine Ike being venomously against the plan since he is fighting for equality among the races, not to mention risking the safety of his best friend (somehow I doubt that every single laguz in the alliance would be okay with a parentless being in such a high position of their army). This sort of plan would be in violation of everything they are fighting for, but I can see Soren suggesting it as a last measure in case the alliance was put in a situation where he had to gamble his own life for Ike's.