Its been discussed, albeit many years ago...It wasn't by moving the sensor, but changing the teeth on the crank pulley to 'fake' the crank's position...
There isn't really a problem with it...but you won't be able to do much with it, for reasons you said...you'll quickly get injector pulses out of sync with the intake stroke (too early, and it'll get sucked right out of exhaust valves at the beginning of the intake stroke)...giving a lean mixture, which is far from what you want with advanced ignition timing...
its also a little more complicated for fuel and ignition timing...the problems i vaguely remember was that it also messed up triggering with the cam position sensor, and you'd need an adjustable cam gear to compensate for that...or something...as i said, this was like 2004...The computer in the car doesn't have a fixed amount of ignition timing, it changes between limits depending on multiple conditions...and this 'fixed' adjustment to the crank sensor wasn't completely implausible, but only allowed very marginal adjustments over stock...
I just mean you could advance timing a few degrees (not even as high as an MP3 ecu, which is more like 8 degrees in some cases iirc)...but barely more than simply using extended plugs, and with a ton of custom work...considering you can have a stock ecu flashed to mp3 settings now for $150 by a forum member, i can't really see the value in messing with the crank sensor...