I can't see any reason it wouldn't work, but I think you'd rather extract an interface, implemented by your domain object, and extended by your proxy (in addition to EntityProxy).
interface Domain { /* getters and setters */ }
class DomainImpl implements Domain { … }
interface DomainProxy extends Domain, EntityProxy { … }
In case you were wondering, this approach has been proven to work.
This issue will be fixed in GWT 2.5.1, which we expect to release by the end of the summer.