Many designs rely on this, it's not wrong. It's only, the diode is not that well specified so you need to work with some assumptions. Like what's the maximum current, is it the same as Id? Although not that this really matters; power dissipation will be limiting the maximum current first, because MOSFETs rarely can achieve the rated Id even when turned fully on, with way less Vds than 1V. With the diode, you have more voltage drop, and can run even less current before exceeding Tj_max. But this is at least trivial to calculate, given even some value for body diode Vf.