I have fished this way for coho on the Skagit river, and it can be very effective, and if you do it right, you don't foul hook fish at all. The key is to have your main weight still well above the bottom, but the leader long enough that the bead bounces along the bottom. Where allowed, I have had great success with a tandem bead setup like this, with about a 4 foot leader, with 18 inches between the top and bottom beads/hooks, and a couple of BB sized split shot on the leader above the top bead.
I have hooked dozens (probably hundreds) of fish this way, and I have seen no evidence they are flossed - many of them still end up with the hook well down the throat even though my bead is pegged well above the hook.
Where only single beads are allowed, done just like you indicate, I still get aggressive strikes with a 3 foot leader and a couple of BB split shot. Why the split shot? Soft beads are neutrally buoyant, so you want to get them down to the strike zone. The point is, if you have your float set short enough, you shouldn't be flossing fish, because your leader won't be laying out sideways.