Clarification:
I appreciate everyone's input so far. The alternatives suggested are interesting, but for this application none of them seem better than the one presented here (except possibly switching M1 with a pnp). What I'm really looking for here is pitfalls with this circuit, rather than alternatives (for example, testing oscillation, input transients, output transients).
End clarification
I'm working on a relatively low power system (10's-100's of mW) that needs to operate from around 1.5V to 12V input. The current system can operate between 1.1V to 5V, but voltages higher than that will damage it. To be clear, it will use up to 100's of mW at both 1.1V and 5V. I've been having trouble finding an LDO thats small and also can handle such low input voltages, so I was wondering what the pitfalls were of just making a discrete one as shown below. The accuracy of the output regulation is unimportant, as long as it doesn't reach 5V. Assume the power dissipation of the mosfet is unimportant for now. It seems to work pretty well in spice. Currently I'm focusing on the DMP1081UCB4 datasheet here.
simulate this circuit – Schematic created using CircuitLab
There is some oscillation caused by the added base capacitance (5n at the moment), but this is probably acceptable for this application (although removing it would be good). The overshoot is also ok.
Green is the voltage output, blue going high represents the load switching from 3mA to 300mA, at 12Vin (which switches on at 1ms).
This is the same situation, except going from 0.3mA to 170mA (which is a more reasonable approximation of the load).