I've lived my whole life with "too much honesty" and it works just as you say. People who can't deal with honesty don't want to be around me, and I end up surrounded by a few friends that I can actually trust, instead of a bunch of phonies. My relationships have almost no drama at all.
I'm not going to say there aren't downsides, though. It makes dealing with the rest of humanity difficult because strangers still get upset. As such, I've taken to just smiling at strangers and not talking about anything of substance at all. If they try to lead it there, I generally just grin and nod no matter the topic. If they push, I give them full honesty and they either scurry away, or don't.
It also caused problems in my previous job because when someone asked a question, I'd give an honest answer instead of hedging. That made me 'unapproachable' and I took a hit on my yearly review, every year. I even made a girl cry because I told her she was wrong. When she said that a manager told her that info, I told her the manager was wrong. And he was. 100% wrong. She cried. She was really good at her job, but just couldn't handle anything outside her world view... And managers were always right, to her.
And of course, romance is tougher... Last year, I finally found a girl that is open and honest like me, and we have mutual attraction, and it's working out quite well. Most of my previous relationships died because they were based on lies. I don't blame them for that, it's just a fact.