Well, in this case, I think you would probably want to weigh the CPU overhead vs the bandwidth utilization. The only time this could possibly cause any CPU usage would be if there were a bunch of mobs all chasing someone at the same time. If that is the case, I would be more concerned about how many position updates need to go out to the client as those can add up quickly if mobs are in close range. As long as they aren't calculating distance too quickly (maybe every couple of seconds), it shouldn't be too bad.
One nice bonus is that this could possibly hinder hackers a bit. If the mob stops chasing players when they try to warp and pull to zone in or something, that would make 1 exploit a little harder to do easily.
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