Hi Christian,
 
Yes, that will work just fine on a normal wiki installation, but remember that I have to deal with upgrading 20+ wikis.  I don't upgrade by copying over the old directory, and I wouldn't want to upgrade by doing an 'svn up' in the current wiki directory.
 
As for the extensions, I can use svn, but about half the extensions don't use tags.  That means I would have to checkout from the trunk instead of the last release.  I have been using subversion for the extensions with tags, but I download and untar the releases for ones without tags.  That is the best way to make sure I'm installing the latest release and not a 'beta' from the next release.
 
If it helps, here is the path that I take to upgrade the wikis.  Thomas explained how I can make that work well with git, so I may do that.  However, as you will see, using subversion to check out the new MW code isn't really that beneficial to me.
 
1. Download and untar the new MW core
2. Remove the images directory
4. Update index.php (may be made obsolete by the upcoming change to Access Manager)
3. Copy the Bento theme and Localsettings.php to the new installation
4. Svn export the latest tag, or download the latest release, of each extension into the extensions directory
5. For each wiki (done by a script)
   1. Remove symlinks to old installation
   2. Symlink to new installation
   4. Run update script for the core
   5. Run update script for SemanticMW
This takes me maybe an hour to do on stage, about 3/4 of it doing extensions.  If people are OK with me using the trunk for all of the extensions, I can make that much shorter.  However, we have enough trouble with the stable releases of some of the extensions, so I don't know about that.  Prod takes about 15-20 minutes because I can essentially cut out steps 1-4.
I don't want to svn up to the same directory because it doesn't allow me to upgrade the wikis individually, testing in between.  That ability been very helpful in the past.
 
-Matt