The two potential problems with coarse-grained and/or figured wood are (1) the varied background tints can obscure whatever you're trying to add to it and (2) the varyied wood hardness can make it difficult to get consistent engraving depth. (At least it's relatively light-colored: dark woods have the additional problem of getting decent contrast.)
It really depends on the design, and when you get right down to it, the only way to tell is to try an actual piece and see what it looks like.
Where are we going? And what am I doing in this handbasket?