That's a nice setup. I suppose it could work, but it doesn't address the possibility of frozen eggs that I've had a couple times this year. Hoping coop 2.0 is less likely to have the problem, but who knows. I wouldn't know why it wouldn't work, and I might even have a bit of heat tape in the garage if I were to look. I'll keep this option open.
I don't see any reason why it wouldn't work just as well on the cup style watering system, does anyone else, birds don't seem to often leave much water in the cups, and I much prefer (and already have several) cups to the nipple style.