Yes it will work.
I think you may be over thinking this. /polite tag
The TB display is also a docking station. Has firewire 800, Ethernet, USB ports. All that data flow is handled over the TB link to a computer.
edit: I got my wife a MBA - she uses a big monitor at home so we had to buy a TB to hdmi adapter. I also hard wired the MBA to Ethernet using a USB to Ethernet adapter. IF I had bought her a TB display I would have used the single TB cable to connect the MBA to...