Your application: Practical, no. Possible, not always.
The biggest problem with the video that is often shown and touted as "footage" is usually on smaller level systems very limited applications. Many systems aren't going to be recording much over 1-2 CIF and 15FPS....it's just what is out there. I can get a heck of a lot better image and performance on a system that is running at least 4CIF and 15+FPS, but the storage (and bandwith) will be the issue. The basic facts out there are the majority of the systems out there lack proper analytics and/or appropriate storage for the system that isn't throttled to the point of only providing basic situational information.
I can put a 3-5 MP camera out there, and assuming it's not a huge area, pick up the license plate and be usable, but the issue is going to be the amount of bandwidth and storage a camera providing that level of data (assuming minimal pixel distortion at distance).
Put it this way, from doing this professionally on the enterprise level, I've got cameras installed that 99% of the public would never be able to pick up and see, but would the average install use or have a product installed in this way, not usually.