It works quite nicely, but the PIN has to be entered every time I auth to SSH. This may be a desirable feature to some, but I prefer the GPG way of the PIN being cached until the key is removed from the system.
(This could possibly be a shortcoming of KWallet, as it would pop up the dialog asking for the PIN, but checking the "remember this password" would achieve absolutely nothing, and besides, I wouldn't want to save it permanently, which that checkbox would otherwise do.)