Hi Jeff,
Sure it will work. Like you said, just a little more power hungry. Speed? Not to worry, the CPU is just at 2Mhz. I would be concerned if you were trying to use 1702's or perhaps 2708's with access speeds greater than 500nSec. The "-2" usually means 200nS. Without looking at the data sheet... at 2Mhz, 1 cycle is 500nS, about 1/3 of that is used to clock the Status Byte, the rest is for Memory Read, so I guess the maximum access speed that would work to be about 300nS. Even playing it safe at 250, a 200nS device would work flawlessly. Keep in mind, this parameter isn't like loading a power supply (ie, the closer to the limit, the bigger the heat & stress)... it's more like driving on the highway, if you are at or under the speed limit, you will not get a speeding ticket. If you keep to the speed limit, you can drive to the four corners of our continent.
Regards,
Josh