anything past that is simply going to create an unstabilised approach when you have to 'dive' to get back on profile.
Not necessarily if it is a circling approach.
If it is an altitude preselection function which is tied into an A/P the aircraft manual will probably also stipulate limitations on how this can be used (ie. not for altitude 'capture' below a certain altitude for example).
Setting initial missed approach altitude makes a lot of common sense as a SOP.
At the end of the day, fly by the aircraft manual and your company Operations Manual. Fly outside of that and you could be hung out to dry.