Sure, the U-232 contaminated U-233 is nasty, but as long as it doesn't make it impractical to make a nuclear warhead it's quantitatively different from the uranium cycle, where after a few months at most plutonium is impossibly contaminated with two even more undesirable isotopes (one is very hot, I've seen estimates of 100kW for a bomb sized quantity (it's used for RTGs in deep space probes), the other precludes much of a bang and required the Manhattan Project to go with an implosion design).

Despite the gamma ray emission drawbacks, it could still be the easiest way to get lots of weapons grade fissionables from civilian power plants.