So long as he uses the 550 internal pistons with the 550 tubes, his plan will work flawlessly. The 750 uppers are 1.5" longer than those of the 550, and the 750 lowers are 0.5" longer than those of the 550, so he will see a total redux of 1.5". (I received this information from the gal at Forking by Frank, the late Frank's wife IIRC)
And yes, the relative brakes must follow their lowers. On my 550, I plan to mount a pair of 750 forks and a 750 front wheel to take advantage of the increased leverage of the slightly larger 750 brake disk. It's this disk (in addition to mounting-hole spacing) that constitutes the difference between the 550 and 750.