Yes, it would be a mistake. As you can see from this thread, there are workarounds and troublesome solutions to try to sync Android to a local Outlook client (not Exchange server). It may be possible, but it's not what Android was built for (it's like using an iPhone with Ubuntu's Banshee instead of with iTunes).
If you want the most seamless and painless experience with Android, you should use Google services.
See what I wrote above. If you're frustrated and haven't even purchased the Android phone yet, don't purchase it. I'll tell you that using Google Calendar, Google Contacts, Gmail, Google Docs, and Google Reader, you'll have a very pleasant experience with Android. Trying to sync to a local Outlook will not give you a pleasant experience. Get a different phone if you want to avoid Google services.