Generally when releasing new code you want to do a gradual release so that a bad release is mitigated. It would be possible by creating multiple functions during the migration and somehow dispatching between them in PostgREST but I would be interested to see what they do.
The other obvious concern is scaling which was only briefly mentioned. In general the database is the hardest component of a stack to scale, and if you start doing it do more of the computation you are just adding more load. Not to mention that you may have trouble scaling CPU+RAM+Disk separately with them all being on a single machine.