I don't think it would be such a big added security-risk. You need physical access to a box to boot from a cd, so this will be a consious thing for the administrator.
For a keyboard and monitorless install to work, the network configuration should happen automatically and I'm sure that it should be possible that while installing, the server gets some 'guest'-level access on the network so that it is only accessible from the internal lan and not the internet. You can then change the password, do the install and connect it to the net.
This should save some administrators lots of time/money.
I think a better approach to the livecd solution would be to create more different livecds or even a livecd 'kit'. You can then customise your own livecd, put on it any pre-compiled packages or 'stage' tarballs, select what services to start, what kernel to boot, whether it should have the bootsplash or framebuffer terminal, etc. Create your own iso, burn onto cd and boot.
hmmm maybe I should look into the idea. Can even combine this with the install programs and scripts that are currently under developement. Might add modem-install support, even. But a no-keyboard, no-monitor install would be cool.
All in the spirit of a 'meta-distribution'

Sometimes I feel like Superman.
Sometimes I'm just recuperating.