I have my extra large box in my main bedroom closet with a kitty cubby hole for them to get in.
I am not overly on top of the scooping game but I keep air fresheners in there and sprinkle baking soda or carpet powder in the box. I would say go for it!!!
I had my box in the corner of my bedroom and when Keegan came along I had to improvise b/c she kept crawling in the box - she was quite the wiley puppy!!
So my dad wanted to make me a walk in closet and I said "Only if you make me a kitty hole". He reluctantly did it - but he made a frame for it on his own!