I too was making an approach in the valley on Saturday, arriving from KTI and circling for 08. The wind was quite strong at about 4000 feet from about 150 and it was consequently hard to make the final turn accurately, even if you were right over to the left when downwind. We ended up going through the centreline at min approach speed and max bank angle. Not dangerous per se, but concentrates the mind!
Regarding other traffic in the valley, the LOWI ATC folk seem to do whatever they can to expedite the traffic flow. I have more than once been asked to shorten or lengthen an approach to allow other aircraft to manouvre over or under me. On one occasion we had a exec jet approaching 26 at the same time as we were, but he was visual and only half a mile away- and converging. Not good. ATC never told us he was there, and wouldn't tell us what his intentions were (he ended up heading off up the Brenner Pass). Thank goodness for TCAS, I say.
Separation never seems to be compromised, but I often wonder how things would go if somebody went around at an inopportune moment.
Some people do visuals straight in on 08, I have heard at least two BA aircraft accepting that clearance.