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I do it, I don't want to use headphones because I want to be able to hear everything. Nothing wrong with it, especially if you get a few more watts out of the right music.
My speaker is tiny and I 3d printed a handlebar mount for it
Haven't used it lately though after switching handlebars, going to try it in this handlebar bag next
I did see a co-worker also commuting to work also playing music on a speaker and it was kind of weird when we were both at a stoplight (I didn't have any music on at the time), I guess if there are a lot of cyclists on your route and you're self conscious it might be an issue.
