I guess it would be fine, especially if you think that you're kids will get quality education. Though, I believe that they still need to have playmates/friends of the opposite sex. You can set them up with playdates, or some co-ed activities during the weekend. :)
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I grew up in an all-girls school (across an all-boys school!) and I appreciate that I did. I got to focus on school and my passions (drama club, writing, etc) instead of being distracted by boys!
studied co-ed and all-girls schools before and I can say that enrolling your kids to an exclusive school is fine. their mental, emotional and social skills will still be honed. :)