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Plenty of people have successfully converted vehicles like these to motorhomes, so the short answer is yes, it's a good choice. Because it's a bus, however, it will have windows along the full length of each side, so privacy inside might be a problem. Many motorhome builders tend to black out various windows as well as fit security screens over them to make the rig more secure at night and when you're not there to watch over it.
Some early versions of these buses were petrol-engined, but a diesel version would be a much better bet for outback touring where diesel is sometimes easier to obtain. Beyond that, the success of the conversion will come down to how clever you are with things like the equipment you specify and the layout you choose.
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