The biggest problem I could see (from a Fire Department point of view) would be the potential for lint buildup if the dryer isn't maintained/cleaned correctly.
As long as the housekeeping is good, and the dryer doesn't vent to the inside you should be alright. I know that if my AHJ ever made that requirement, about 75% of the houses in my town would be up feces creek - including mine. In the old days, the "laundry" area was a popular point for panel placement.
