I wonder if this allows running things like mitmproxy on your phone. Or maybe someone is aware of a good alternative?
Suffice to say it's perfectly possible, most phones are plenty powerful enough.
[EDIT]: if it's not rooted, I know you can still use it with a large portion of mobile traffic by adding the trusted cert it generates and then setting it up as a network proxy through standard settings changes (ie: no iptables transparent proxy necessary). I believe some apps will detect this.