That army absolutely should work. It will be very fast and hit very hard. I personally would swap out at least one squad of Ishlaen Guard for Morsarr Guard, because they can generate mortal wounds, have better rend, and do more damage. At that list, it should be 980, so you should be able to do that swap without going over 1000 points.
If you plan to expand to 2000, definitely get more Morsarr and a Leviadon, and add in a Tidecaster or two. I find that going with the Akhelian Corps and the Royal Council at 2000 points is a good way to get a 2-drop army that's powerful, gets a lot of re-rolls, and covers the board nicely.
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