I’d probably question the use of Taxonomy for a site of this size, but certainly yes it will work.
I don’t see anything that would be particularly tricky to do out of the box so to speak, eg having templates for all your main top level items and using categories to serve up services.
There are several ways to skin a cat however, but generally I make the top/main navigation fixed, - hardcoded into an embed/snippet, therefor not available for clients to edit.
I’d be using Taxonomy for subsections such as ‘About’, or even to order entries within the Services section.