Yeah, I'm sure you can knit in the round, it just takes some getting used to and getting the stitches joined to your satisfaction. A big plus is that you won't need to do any seaming. If you choose to use circular needles, be sure to check out the various ways of Knitting in the Round in the Free Videos section. You can use longer cables for small diameter knitting and don't have to worry about having needles short enough to knit for baby legs. I'm not saying you should do circs rather than dpn but the videos are good to watch to help you make a choice. Enjoy!
Happiness is catching that dropped stitch while it's still fixable..