I think that this is a ood idea, and i don't see why it would not work well. My mother used to have a special little bucket that we put all of our veggie.fruit scraps in, plus she saved the newspapers, and we put it all on the compost pile that she had out back every day. Granted, this was outside, but still, i don't ever remember it having any kind of a bad smell, even in the heat of summer.
The earthworms loved it!
Mom would make a small make-shift fence around an area, and then start filling it in with the newspapers and compost material, plus we added some wood sawdust or shavings from time to time. When it got too full, then she would leave that one to work, and start another pile nearby.