The main problem with this approach at the moment is it busts your prompt cache, because LLMs expect all tool definitions to be defined at the beginning of the context window. Input tokens are the main driver of inference costs and a lot of use cases aren't economical without prompt caching.
Hopefully in future LLMs are trained so you can add tool definitions anywhere in the context window. Lots of use cases benefit from this, e.g. in ecommerce there's really no point providing a "clear cart" tool to the LLM upfront, it'd be nice if you could dynamically provide it after item(s) are first added.