I have seen this done while installing Lancer carbon fiber rails. It does work but it is usually done on gamer rifles not "save your life" rifles. I also believe that you will have some trouble grinding that tooth off because the steel is tougher than the aluminum nut on the Lancer. I have seen and had barrel nuts come loose on me. I had a DD Lite rail that I put together with the same light torque concept as you are thinking about.
If cost is a factor in building your precision set up, then you are going to sacrifice some accuracy by using the GI barrel nut. If it is not a factor, I would suggest using a hand guard like the Geissele with a longer more barrel supporting barrel nut.
Good luck and have fun with your build!
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