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I am making a "classical" that I want to look and feel more like a steel string - a hybrid. For that reason, I am considering using steel string tuners.
As an experiment, I put nylon strings on an archtop (so that I could tie the strings to the tailpiece). The tuners seem to work. It stays in tune just as well as guitars I have with conventional nylon tuners. No difference as far as I can tell.

I remember seeing a picture somewhere of an Earl Klugh nylon string that I thought had steel string tuners, but I can't seem to find it.

Are there any technical reasons not to do this. Am I missing anything?

Many of the great old Spansh guitars (Torres, M.Ramirez etc.) which were orginally fitted with wooden pegs were converted to machines around the turn of the century. Often the ones used were the type (probably German) that can be seen in abundance on American turn-of- the-century parlor guitars.
These tuners all have the narrow metal posts that we now think of as "steel string" tuners.
They work fine, albeit perhaps not quite as sensitive as the larger rollers, but it isn't really a problem if that is what you want.
The only thing to consider really is that you have a head angle which will provide enough "break over" between the nut and the string post if you are thinking of typical vertical tuners.