Your right, it is probably not a good idea since other apps rely on this. My host runs Apache, MySQL and SSH services... I thought it may help to prevent someone from gaining (advertised) knowledge of the kernel version and using specific vulnerabilities.
Although the uname command should only be visible within a shell, there are leaks from various web services (phpinfo(), phpmyadmin, mambo, etc).
No worries - it seems like this is security through obscurity anyways. I'll stick to iptables.