Hi,
that's an approach, which can work in case your authors need to maintain both key and value fo such a lookup table.
But of course there are limits, for example one Content Fragment per item in the lookup can be a huge overhead. Especially if you need to maintain multiple lookup tables or if you have restrictions on them. Consistency could be a problem if the CFs need to be activated along with the page. And others.
it can be a very straight forward model, but it's not a generic solution for such problems.