Frank, of course it is possible that the radial feature is a good one for serving as a primary datum feature, but for me there is not enough info to be sure about this, we do not see or know anything about mating conditions of the part.
I will try to organize newest edition of ISO 5459 (2011) which deals with datuming, but to be honest I do not expect to find anything clearly legitimizing usage of such kind of features as datum features. Let's hope I am mistaken.
On the other hand - as you well know - ISO GPS standards philosophy is to show rather generic than specic examples of geometrical tolerancing, so lack of clear indication of a concept does not mean that the concept must be considered prohibited right away.