Hi, this is a good idea. This solution is used specially with internal passenger car light kits because, although the car's wheels pick up the energy, it happens small blackouts across the tracks due bumps or even bad contacts. This eliminates those flickers, and, I guess, should also eliminates flickering caused by the PWM frequency. N scale locomotives are so small so I would prefer a solution at the controller level. In fact, soon I'll migrate to DCC system where the decoders are mounted inside the locos and this kind of solution, I guess, it is in use: an approach to motor and another one for lights, both at the decoder level. For now, I'm using 40Hz which is led flicker free and the buzz sound is on bass band and low, so it's much more bearable and with a little imagination, it seems the beating sound of a diesel motor, unlike at 500Hz which sounds like a annoying mosquito.Do you have space to include a high-uF electrolytic capacitor across the LEDs to reduce flicker when pulsed at 20Hz?