If the existing flange is properly anchored to the floor, then tiling up to it has a height issue. You can overcome that with flange extenders, but every time you add a part, it is one more opportunity for it to fail, plus the further down in the floor the whole thing is just makes it harder to remove if and when you ever decide to do it. MANY are installed as inidcated without problems, but it is easier for there to be problems if you don't get all of the new pieces together properly - the extender rings can leak, and it would be below the floor surface and thus, you might not notice it until the floor rotted out and the toilet fell through. Granted, that typically would take a long time. Carpenter ants adn termites just love damp wood, too. A few drops every flush might not create a stain on the ceiling below, but it can feed wood rot.