I didn't know this... just tried it out, and it does work.
Your implicit conversion comment is incorrect - as I understand it, the column is treated like any exact numeric from a query perspective. An index will be used if appropriate. That will primarily be determined by whether other non-columns are required (as in your example) and by the selectivity of the index.
I could have sworn that I had seen this happen before, but I can't duplicate it. Using 'TRUE', 'FALSE', 1, 0, or a 1/0 cast into an int variable all are producing an index seek for me, so I guess it isn't necessary.