Well it would interfere if you were wanting to use the ear phone jack but if you are just using it as a storage option the stylus doesn't look long enough to down in the hole as an earbud would. Looks as if it just fits "and stops short of making contact with the electronic part.
Seems a little too small. I have one that's 1.75" long (attaches to earphone port with a plastic plug) and it's borderline hard to use, with that one you'll just end up with two fingers block the view instead of one.If you don't mind that I don't see a problem.
i really cannot understand why you would want a stylus for an ipad. Are you using it for sketching or as a graphics tablet or something?