Do you have any trouble with the users being prompted by the Windows firewall to allow the server to listen on localhost? I like this way of doing things but I've had propmts like that for my own dev tools and I think that would put off my users.
Anecdotal, but I maintain a mildly popular Spotify player (https://github.com/dvx/lofi) which needs a similar flow for OAuth authentication. I've never had an issue created or complaint about the Windows Firewall popup.
I'm not actually sure in which cases the prompt happens these days - I meant that to be part of what I was asking but didn't word it very well. Hopefully listening on 127.* doesn't trigger it!