Is there a best practices for using the extend tag in the POM?

My structure is something like:

holder-dir
    Project1
        project.xml
    Project2
        project.xml
    Project3
        project.xml

Some things are common between the projects (by convention, not by
using the extend).  I would like to take advantage of the multiproject
plugin for site generation, etc.

Have seen suggested something like:

holder-dir
    project.xml  -- Multiproject POM
    maven-common
      project.xml -- Common properties

    Project1
        project.xml
    Project2
        project.xml
    Project3
        project.xml

Each of the Project POMs would extend the POM in maven-common.

Any thoughts/suggestions?  What successes or failures have people had
going this route?

Thanks,
Grant

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