I can totally see your plot... and I think it really works. I _love_ the idea that Bertie accidentally gets engaged to Baxter's lady love.

The only question I have is whether Baxter would really understand what was going on (again, since he seems so unable to pay attention to anyone else's feelings) or he would just say something about how "close" Bertie seemed to Jeeves, thus tipping Jeeves off to what was going on.