I routinely dry hop in the keg. I much prefer it over the secondary for a couple reasons. First of all, it renders the secondary unnecessary. Typically, I just let my beer sit in the primary for a few days after fermentation has completed. I've found that reduces off-flavors such as diacetyl. Also, remember everytime you move your beer from one container to another, you increase the chance for contamination. So eliminating that step just keeps it safer.
Secondly, you can lose a little aroma in secondary through the airlock, whereas in the keg, it is kept tight.
I'm not sure you really need to double up in the keg, however. I suspect you would get the same result by just adding a half ounce more in the keg, because of the longer time it spends in contact with the beer.