Does iTunes Match work with library in Dropbox?

Getting ready to drag and drop my iTunes music library files to Dropbox for backup reasons. Will then of course point iTunes to the new location.  Before I make the move, I'd like to first hear from users who, like me, are on iTunes Match but who, unlike me, have their library stored in Dropbox.  What has the iTunes Match experience been once library is up in the cloud?  Any concerns or dangers with this scheme?  Anything I should be aware about?
My situation is simple.  Not intending to share iTunes library with several computers, etc.  That's why I signed up for Match in the first place. Only copying library to Dropbox as a backup. But need, no require, iTunes Match to continue working seamlessly for me.
Thank you for your feedback.  Soon please.

Confirming that my disk space is mostly occupied by my music collection.  And after spending $99 for extra Dropbox storage, I am not about to purchase additional disk capacity for my MacBook.  How can I get out of this hole and is there a viable solution? 
Can I confidently trash my iTunes folder, empty trash, connect my Time Capsule to my MacBook, launch/point iTunes to my most recent backup there, and then follow the steps given in
http://support.apple.com/kb/ht1449
without deleting the iTunes library/media backup at the end, of course?   In other words, copying directly from Time Capsule to my Dropbox.   Is this doable? Desirable?  Any dangers?

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