It could be - it depends on your processes and reporting really. The build number of a product can be veryeffectively used to populate the versions list in a project, the only real requirement is that you are working so that projects have a clear 1:1 relationship with products (you can have projects that don't have any product of course)
Depends on exactly how you want to do it - it's not simple code though. The most simple version would be something that automatically inserts new options into a select-list's list of options (which needs admin rights) and you'll need to decide how and when an insert happens.
Of course, you could just create a new field and add the data manually, but I can't imagine that being sustainable (although it would work while you wrote the code)
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